The Second Minister for National Development Desmond Lee remains optimistic about Singapore's real estate industry.
It seems that Singapore's property market is on the upswing, as the government announced that they predict residential units for sale in Singapore will double in number "in the next few years".
The Second Minister for National Development Desmond Lee gave these comments at the Real Estate Developers' Association of Singapore (REDAS) Spring Lunch last February 23.
"The property market is in the early stages of a recovery and positive buying sentiments are likely to continue," said REDAS president Augustine Tan.
"Barring unforeseen circumstances and on the back of a stronger-than-expected economic growth outlook in Singapore, sale momentum of 2017 is likely to carry through to the next few years."
The marginal buyer's stamp duty rate has been raised from 3% to 4% for residential properties worth over $1 million. In spite of that, Tan remains optimistic about the industry.
"Although the new revised buyer's stamp duty hike may add some friction to transaction volumes and buyers are still price-sensitive, it is unlikely to derail the recovery," he said.
"Singapore properties are competitively affordable compared to cities like Shanghai and London."
Tan cited a JLL research that said it took 4.8 to 5 years on the average to afford a home in Singapore in 2016. In Shanghai and Beijing, this was 14-15 years, and in London, this was 8.5 years.
Lee continued to say that the real estate industry transformation map will help shift the industry towards seamless and secure transactions. This will help existing firms remain competitive even with the influx of disruptive new players.
He also recommended that firms design buildings which are easier to maintain, as this will help reduce costs moving forward.
"We encourage the industry to adopt smarter and more efficient facilities management systems that can streamline processes, reduce abortive work, and reap cost savings over time."
He also encouraged developers to take into account Singapore's land scarcity.
"With land scarcity in Singapore, there may be a need for more mixed-use developments with higher density."
Featured image: Pxhere; Pexels
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