Singapore's real estate market potentially concerning

Despite world economic concerns, Singapore's real estate market has been strong and, thus far, that continues to be true. It's estimated that housing prices will rise 5-10 per cent this year. Singapore has virtually no unemployment to speak of (2%) and for most of the real estate markets, this is contributing to stability. But luxury housing is an area of concern.

Bloomberg.com's Andy Mukherjee reports that the issue is counting on investors who usually seek out premium or "iconic" properties to invest in. Prices are down in this market and foreign investors are reducing the number of units they are buying. Additionally, rental yields are down which, again, inhibits investors from putting as much of their money into real estate in Singapore. There is concern that the need for foreign workers may stall which will directly impact rental returns.

The good news is that Singapore is still an attractive, vibrant place to live and invest in real estate. Loan rates are low, job opportunities high and as long as developers continue to build affordable housing, a real crisis can probably be averted.

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