The inflation rate hit 4.8% in 2010. However, it was seen to ease off 3% by the end of this year (2011). So, the economic situation of Singapore is expected to grow better with time and thus the investment options too may grow better by the end of this year and the next year too. So, according to the financial experts the country needs to focus more on the different emerging markets, which are not only large but are diverse and even exciting.
The property sector
The property sector inSingaporehas gone underweight and thus it is supposed to become more of an investment option for many. This is because, as a result of the underweight property sector, the banks may offer low interest rate mortgages thus, people will b bale to afford to buy more property, thereby popularizing more of the Singapore real estate investment option.
With the low interest rates, mortgages are going to become still more affordable. In fact, it has been predicted that the mortgage interest rates are not supposed to move up anyhow in the coming two to three years. Thus, the demand for homes have remained positive throughout the year and this trend is expected to continue in the coming few years too.
As per recent reports, the landed home prices have started to grow at a faster rate this month, in comparison to the non-landed homes. The average resale price of the leasehold landed homes in the non-prime districts is said to have grown by 3.8 percent on a quarter-on-quarter basis in the third quarter of this year (2011). In addition to this, the average resale price of the freehold landed homes of the different prime districts of the 9, 10 and 11 is said to have increased by 2.8 percent on quarter-on-quarter basis.
However, if the non-landed sector is to be considered; the average resale price of the leasehold condominiums mainly of the suburban areas are said to have risen at much slower rate which is at 2.5 percent on a quarter-on-quarter basis in the third quarter of the year.
And still the demand for the private homes is seen to have remained positive irrespective of the fact that the stock markets have become volatile in the past few months. However, if the global market continues to grow weak in the coming months, the real estate market in Singapore too might weaken. So, it is important to check the global economy before investing your money in any of the financial markets.