Till some time back when some cooling measure were taken by the Government of Singapore, the situation was really good for the people interested in investing in the Singapore real estate market. This article will act as a guide for those who are looking to invest in real estate or are already in the market.

It has been noticed that although the market has been able to withstand the tough times despite some positive steps taken by the government, it seems to be reaching the tipping point. According to a report by UBS, it has been predicted that there may be a fall in the home prices by 10-15% within the next 12 months.

The market may appear gloomy due to the following reasons:

• The global situation is affecting the economic growth of Singapore.
• As the immigration laws have been tightened by the government, it has resulted in the slowing down of the population growth.

These factors may act as a deterrent to the foreign buyers from entering into the real estate market, thereby dampening the activity in the resale market.

The property agents who understand the pulse of the market much better than the research analysts differ in their opinion. Sales for the first six months of 2012 alone fell short by almost 12,000 units. Maximum demand in the first quarter was for mass market homes. As many as 3700 units or 69% new home sales were recorded in the OCR (Outside Central Region). Maximum sales were recorded in Flo Residence, Palm Isles and Ripple bay, which sold 324, 306 and 568 units respectively.

This could be due to implementation of ABSD (Additional Buyer Stamp Duty) in December 2011, which caused the foreign buyers to refrain from buying in the prime areas. Ever since this stamp duty was implemented, a sharp plunge in the demand by the foreigners for residential properties was noticed. This factor made the investment in the real estate more appealing to the upgraders in the Housing Development Board, who usually buy keeping long term goals in mind.

The increased supply in the near future could help to ease the demand in the OCR, thereby preventing any artificial increase in the property prices. In the long term however, as the global economies get strengthened, it would surely boost the investor sentiments. It may ultimately help in the recovery of property prices in almost the whole of the central region.

It is quite obvious that the future of the Singapore property market depends upon the purchasing power of the locals. If the authorities take proper measures to prevent short sighted speculative investments, the sky is the limit for the growth of the Singapore property market.