With Singapore’s new condo development property market showing all the right signals for a great restoration of investment properties, seemingly to the market where there is something else that might not be fully there, yet which is added to the restoration. With the hike in real estate property prices for newly developed condo residential units, which have risen quarterly, there are many question left unanswered. Is there something missing in the new condo development property market? Is everything fully in place with the restoration? Whatever the case is, there must be a more comprehensive way to look at why a lot of people still believe there’s something missing in the real estate market.
Since the private residential prices are up after a continuous decline in the prior 4 years, this is due to the rise in land prices for development. How are both rising simultaneously? Since the government ease the buyer and seller stamp duty, this is a key factor in the rise of both new condo development for buyer and seller prices, ultimately to see more growth in investment property. This has affected the bids to redevelop on older condo development sites making it better for developer like the new development at 8 Saint Thomas building at 8 Saint Thomas Walk. This type of development known as en bloc has seem to have boost to a level where people feel as if it’s a great real estate market deja vu of 10 years ago.
Why it’s a believable disconnect along 8 Saint Thomas Walk?
Although it’s uncertain, many people feel that there may be a certain disconnect in the new condo development real estate around Singapore. While analyst continue to analyse the market, they feel that there may be a disconnect within the new stock of condo units around Singapore. This is because the housing prices are continuing to rise within the city-state but not the general income. Since there really hasn’t been a significant increase in discount from the developers, it feels like the current discount of new condo developments don’t really ease much in terms of exponentially gaining on investments with these new condo projects, because people may struggle to purchase them.
How can this disconnect be repaired for 8 Saint Thomas?
Simple! Increase the wages of Singapore residents to keep up with the demand of ever-rising private housing market. Most of the resident numbers in Singapore showed resident’s wages to be around $31,000 in 2017. Is this enough for them to sustain with the rise in new condo development properties? Who are these properties being built for in Singapore if resident’s wages are not meeting the criteria? When you look at the numbers and do the math it doesn’t add up.
With the median home prices being around $300,000 and residents getting a median salary of $31,000 divide the median income by the price of newly developed condo units and you’ll find that the numbers just aren’t there in the disconnect for rising condo prices as at around 1.8 sq meters per month that is 1/8 lower than prior years in the new condo market. That being said, it is going to have some major changes in repairing the buyers disconnect. First place to begin with, may be the raise of income levels before potential buyers and home seekers will really flock into 8 Saint Thomas Walk for a visit to the actual show unit.