Singapore property still an investment choice

Source : My Paper - 24 Sep 2008

DESPITE an uncertain economic outlook, Singapore property is still being viewed as an attractive investment option, according to a survey by the iProperty.com Group, a network of property portals.

Some of the factors contributing to this sentiment include the potential profit from capital appreciation and the potential rental income.

The survey studied the buying habits and trends of 949 people - both Singaporeans and foreigners - who visited iProperty’s Singapore website last month.

With Singapore property prices stabilising in recent months, respondents said they are open to buying a property in the next 12 months - almost 85 per cent said they intend to or may purchase one.

They are most interested in completed condominiums (25 per cent), followed by uncompleted condos (18 per cent), completed landed properties (16 per cent) and resale Housing Board flats (12 per cent).

Among those polled, 42 per cent expect prices to rise, with almost the same number (41 per cent) expecting them to fall.

Given the slowing down of the economy, a majority of respondents (48 per cent) are looking at properties from US$110,000 (S$155,700) to US$500,000. Only 4 per cent are looking for a property in the price range of US$1.1 million to US$3 million.

‘Even though people are keen on investing in property, we can see that the bearish economic outlook has resulted in investors looking at more conservative property choices,’ said iProperty.com Group executive chairman Patrick Grove.

However, some things about buying a property, such as the emphasis on location, remain unchanged. Whether the property is for personal use or for investment, location is the most important factor, said 51 per cent of the respondents.

The other factors are price (36 per cent) and potential capital appreciation (20 per cent).