This is a good video worth investing some time to watch. The main topic is about enbloc but other good pointers are brought up, giving us deeper understanding of the Singapore real estate market.
Here are my key points from the video:
1) Singapore has close to 90% home ownership, which is unique compared to other countries where it is around 50-70%.
2) Singapore has been successful in attracting wealthy individuals despite being a land-scarce country.
3) The Singapore property market is expected to continue rising 5-6% year-on-year given current trends.
4) Developers are still hungry for land, but pricing needs to take into consideration rising costs and risks.
5) Large enbloc developments are no longer as attractive due to the 5-year deadline.
6) Household wealth and savings have continued to climb over the past few years.
7) The Singapore real estate market is not in a bubble due to past cooling measures implemented by the government.
8) The market is currently heavily regulated, with low risks of a price drop of more than 20%.
9) Singapore’s top banks are regulated by the Monetary Authority of Singapore (MAS) and have strong balance sheets, unlike the US market.
10) Causes of past price drops include oversupply, crises, or severe recessions with job losses.
11) Asian societies tend to have a higher tendency to buy properties rather than rent, and to pass them on to the next generation.