Singapore is predicted to remain as the top choice for real estate investors in Asia. However, caution is to be noted as there might be oversupply of units ready to flood the market in 2-3 years time. These units will be out there sourcing for tenants and analyst predict that there might be a portion of these units that might not be able to find tenants as the city state reduce the number of foreign workers into the country.
Drop in real estate rankings.
Emerging Trends in Real Estate Asia noted that Singapore’s rankings in real estate investment dropped to seventh space due to concern in oversupply. However, Singapore still remains an attractive state for real estate investment and other forms of investment activity due to the city’s strong growth and vibrant economy in the region. It also note that the real estate environment should remain attractive in 2014 and certain choice properties should still see strong demand and robust activity can be predicted.
Oversupply in real estate
Despite the uncertain economic fundamentals in many regions of the world, real estate in Asia continue to enjoy strong growth. Particularly, money from sovereign funds is increasing and these huge funds have always been on a lookout for real estate opportunities. But sovereign funds are also concerned that rising interest rates and inflation might reduce yields further amid the uncertain economic conditions and oversupply.
Meanwhile, Singapore’s real estate is gaining attention lately from the Philippines as the economy is growing rapidly from the inflow of funds particularly from money remittance back into the country. Singapore real estate is highly regarded in the Philipines as the country enjoy good trading relations with the city state.
Remain as an attractive investment
The Hillford at Jalan Jurong Kechil might see some foreign buyers as it is the first retirement resort to feature 24 hour concierge services with commercial facilities on the 1st floor. It will preview in 2014.