Not a good time to buy in Singapore, true?

There are several very big differences when you compare the Singapore and London property market.

Supply
The supply is chronically tight in London, with no increase in supply anywhere near the horizon.  Just google "London housing shortage" and read it yourself.  What about Singapore?  We think that we have very little land and therefore supply for housing should be tight.  However, this doesn't appear to be the case.  In recent times, there is so much supply coming onto the market.  Some say that Singapore is over-housed.

Planning Permission
From a Singaporean point of view, it is quite amazing just how difficult it is to get planning permission to build anything in London.  The local councils are extremely powerful.  The builders have to clear many hurdles and jump through many hoops in order to get the permission approved.

This website - http://londondockconsultation.co.uk/ gives you a good idea how much effort a developer must put in, through endless rounds of consultations and changing of plans, before any planning permission can be obtained.

Click on the links for the following articles:

Straits Times article (1st Aug 2013) -  "Wave of new condos drives down rents" ;
Straits Times article (24 Aug 2013) -  "Surge in new homes will push rents, prices down"

Both articles make a very simple point.  A lot of supply is coming online.  A lot.

Have a good day!

Back to our welcome (content) page....

Important Disclaimer - Read this at YOUR own risk.  The views contained in this blog and blog post are entirely mine. We cannot be made responsible for any investment decisions you may, or may not, take.  Nothing in this blog can be construed as professional investment advice, as we are NOT professional investors and we are ill qualified to give you any advice.