Condo developments aimed at the mass market (under S$1,000 per sq ft) will likely drive Singapore’s property demand this year, as more look for ‘safer’ investments amid low borrowing rates and rapidly increasing real estate values.

In a move to cool the market somewhat, the government banned private property owners from simultaneously owning a government Housing & Development Board (HDB) flat in August last year. This move, plus an influx of foreign workers looking for either investments or just more affordable housing, should see increased interest in the cheaper properties.

It’s also a sign that foreign investors see some risk in the higher end of the market, yet still retain enough confidence that some Singapore prices will rise further. Other speculators’ favorites in the region, like Hong Kong, have introduced tougher cooling measures like a 15% stamp duty on properties sold within six months of purchase.

source & article: Channel NewsAsia