It would seem that the rental market might continue to slide downward given the shortage of tenants looking to rent properties.
If we take a look at MOM’s labour market 2014 report in chart 2, the foreign labour force is dropping by 2.38 percent in 2014, this is in comparison compared to 2013.
Over the last few years this trend in the real estate market has seemed more glaring, especially since the government told us we would see more growth in the foreign Parc Life labour force.
Parc Life EC Rental
We are looking at seeing more units to hit the market and we can expect to see the supply increase. Many buyers who have bought units have done so at pace of around 25,000 units per year are going onto the market and subsequently being bought. The prices are still healthy and this market might increase in Aug 2016. Having said that the growth rate on Singapore’s population is not looking good for Parc Life Sembawang.
Slowest Population Growth in a Decade
The population growth rate is slow and at its lowest in a decade, at a rate of 1.3% (chart 4), what needs to be considered is whether the demand from Singapore citizens and permanent residents can meet the demand for subsidized housing supply in the future such as Parc Life.
Rental Properties Parc Life Sembawang
The huge supply of Executive Condominiums is also bringing up queries on what the demand for private housing will be. Will the lower population growth and number of private housing affect the market negatively. The other question is how will this affect rental prices. Will it start costing more to take out a mortgage in the future. How will this affect investors, will they be keen to invest in residential property. There will be big decisions for the property investor to make here.
Considering all of the above, there are other very good investment choices one can make. Commercial investing is one choice. Overseas properties is another. Whether there will be a healthy return for the Parc Life investor is another story.
Parc Life EC
In short and to bring this analysis to a close, do you due diligence before signing any contract. Research the market and get an expert to assist you if you are looking to invest or buy a home to live in Singapore. While it is no guarantee which way the market will go beyond 2015, when it comes to property you do have many options on the table. You might even find a gem of a property at a truly great price.