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The Anomalous Real Estate market that is Singapore
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The Anomalous Real Estate market that is Singapore
Being featured in the most recent issue of Wallpaper Navigator as one of the cities to visit, Singapore is making its reputation as a ‘city that’s learnt that it’s ok to live a little’.

Most of the efforts towards being creative are, in its purest irony, government-driven, as detractors all too often point out. But government-sanctioned licence and creativity isn’t necessarily a bad thing, as this city shows. 

From the recent rulings to allow bar top dancing, a conscious effort to tout Singapore as a design and fashion hub to the controversial move to introduce casinos for the much-desired ‘Guggenheim effect’, policymakers in Singapore show they are serious about fun in this city state.

Moves to reposition Singapore and revitalize the economy has extended to the property sector. Pre-1996 anti-speculation laws which prohibited foreigners from purchasing low-rise apartments below 6 storeys have been abolished, as are the moves to make leasehold properties a more desirable option for purchasers.
 
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The feel-good factor is definitely back- show flats register more activity and greater proportions of new project launches are being snapped up by property buyers- all coupled by a circumspect public scarred by the ‘96 property bust.

The property market, whilst showing signs of healthy recovery, is nowhere near the heydays of ’96 where easy money can be made overnight by ‘flipping’ a property, queues are a common sight outside popular projects and brokerage licences are sought after.

Improvements in the local property market have been marked by a greater turnover, with more apartments and houses being sold than in previous years but with no consequent rise in prices.

The recovery rate, compared to Malaysia or Hong Kong, is dismal, making Singapore an anomaly in the regional property market. With developers back in full swing, offering a variety of condo couture to up market design-to-order housing projects, Singapore offers good quality workmanship, design conscious developments and a strictly regulated development timeframe.

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The price lag can only be explained by a society that is overly cautious and a temporary glut in the developers’ offerings, creating therefore, an anomalous pricing situation that marks the Singapore property market as a good ‘buy’.

The expatriate scene

The expatriate scene in Singapore sees greater fluidity in interactions- there’s an easy mix of American, Japanese, Indian and European expatriates with very little of the ‘cliquish’ scene one notices in other countries. Interaction between locals and expatriates, whilst having its historic thorny moments, is generally easy and welcoming and Singaporean expatriates having been deemed to have, in government lingo, ‘assimilated’ well into society- contributing factors, ironically being the economic cutbacks, which saw a percentage of expatriates being on a local package, thus narrowing the economic and, consequently, the social divide in that expat/local distinction.

A government policy that encourages foreigners to apply for permanent residency ( ref: Mearsheimer’s indicators of a great nation being GDP and population amongst others).

A policy of attracting the best foreign scholars, deeming its expatriate community as ‘foreign talents’- has spilled over to the population in that traditional top-down approach.

Living in Singapore

An urban cityscape, Singapore offers the conveniences of city life- things get done, everything’s within reach or a call away- with conscientiously green landscape surroundings.

The conscious(if too premeditated) effort to strike a balance between convenient city life and an environmentally sane environment is reflected in the choice of housing- the city’s latest development catered towards hip, young urbanites is located opposite a trendy stretch of restaurants and watering holes but its main attraction is the Singapore River visible from your double height glass windows.

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Families wishing to be close to their workplaces and their children’s schools have the choice of black and white bungalows- almost decadent in land size and unabashedly luxurious, commemorative of a colonial legacy. Huge houses built on stilts, with a separate outhouse for the amah and the chauffeur, these houses have land sizes of 100,000sqft and above, luxury indeed when you consider young 20-somethings making it home in 800sqft studios in high-rent, downtown Orchard Road.

Further contrast and delicious irony extend to ‘conservation homes’ a buzzword with the trendy, design set. Carefully restored Peranakan shophouses belie ultra-modern interiors: Zen gardens of concrete and bamboo, hip toilets endorsed by Monsieur Starck, retro mosaic works, industrial-looking staircases, crazy waterfalls that span the whole three storeys of the shophouse… A black and white with stainless steel kitchen, lap pool, bar reception and a cigar room- It’s great to see conservation efforts so thwarted. Amongst the more creative interpretations of the vernacular shophouse architecture was to use the elongated space of the shophouse and its characteristic courtyard to effect a Moroccan riad-house. The architectural details are, by providence, amazingly similar- the (almost) anonymous, undistinguished façade, the central courtyard, the built up, elongated space; it’s certainly one of the cases where a non-vernacular style of architecture has been successfully transplanted, accommodated within a surprisingly vernacular architectural shell. The existence of a Moroccan riad-style residence is also testimony to the cosmopolitan living environment in Singapore.

An up and coming fad is for property owners, disdainful of the paltry square footages in newer apartments, buying older apartments and then spending that extra money saved on the psf difference on the renovations. What this amounts to is a lower psf(per square footage) pricing, even after renovations, and a unique apartment done up to their tastes that rivals the finishes and design of a brand new apartment in one of the new developments, together with a much larger area, more sensible layouts and usually a greener view than the ones afforded by the newer apartments. Catching on as an investment strategy, more people are seeing sense(and money) out of something most previously considered as a hobby. It is becoming increasingly possible to buy an older apartment, renovate it and then selling it for a tidy profit, reason being that the psf prices would still figure to be much cheaper compared to a newer apartment on the same stretch or a comparable location.

Eat, drink, live

Singapore sees an eclectic mix to its dining and entertaining choices. The Indochine chain of restaurants have opened a branch on Clarke Quay, facilitating the façade of a gorgeous, old Chinese house. With interiors that resemble the set of ‘Raise the Red Lantern’, an Ice Bar and good food, this is characteristic of an indochine offering- fusion with an unexpected twist, surreal interiors with that extra luxury.

Café Samar- previously written up as being bigger on ambience than food(I’d disagree, I’ll merely replace ‘food’ with ‘service’) is a relaxed Middle Eastern joint- mysterious black walls, gold tiles and an unapologetic political stance evident upon entry, this is a cafe with, for lack of a better word- attitude.

Sentosa Beaufort sees beautiful hotel restaurants too- try the restaurant at the Beaufort during sunset- views are resplendent and architecture terribly eco-sensitive(the whole ‘outdoor’ area was constructed to preserve an old tree). With a bar area overlooking the sea, cold, jasmine-infused drinks and artfully prepared food, this underrated joint is testimony to saving graces of the island.

Wallpaper-worthy joints are opening up across the island- from predictable locations like downtown Orchard Road and the CBD area to sleepy neighbourhood locales and offbeat areas like the new Biopolis. Everything from restaurants to cake shops (check out Awfully Chocolate’s minimalist décor and ice-cream in Chinese takeaway boxes); dermatologist’s offices to the new genre of the Singapore design hotel. 

Pros and Cons of living in Singapore
 
Pros:
Lower Tax rates
Excellent medical care
Good public transport system
Various choices for local, ethnic cuisine
Excellent base for traveling around Asia
Stable political and economic climate
Cons:
Locals and foreigners alike complain about the driving. Road bullies make headlines (so do bickering neighbours incidentally) - level of frustration in a traffic jam probably does not rival neighbouring cities like Bangkok or Jakarta but we wonder if there aren’t greater outward manifestations of violence.

Surf onto any expat message board and you’d begin to notice the less than savoury undercurrents- the passionate side to Pleasantville, with visitors posting messages criticizing everything from inter-racial dynamics, expat-local relations and government policies.

Singapore remains a safe, popular location regionally for its political stability, its less stratified social interactions, the balance between urban living and greenery, the efficient administration, medical care and schooling. There are downsides to an ordered, almost regimented society but most of the perks of Singapore stem from its predictability, efficiency and sense of order. 

Purchasing Property in Singapore

Visiting showflats is fast becoming the unacknowledged national (weekend) pastime as developers pay top dollar to recruit the best in the interior design industry in a bid to distinguish their projects over their competitors and the new, realized niche market of home buyers who aim for top of the line, ‘designer’ finishings. 

There is the option thus, to visit showflat and project launches for new developments. The classifieds section provides another avenue for property hunters, as does the internet, another communication medium for a society with amongst the highest internet penetration rates in the world. 

To stimulate the property market, a lower cash deposit  has been allowed for purchase of property- 5% cash instead of the original 10%. Hidden costs for property purchases include legal fees and stamp duty.

Keen to keep the best, Singapore property laws have made property more accessible to foreigners in unprecedented ways. Even landed property- the Holy Grail in a land-scarce population, is relatively within the reach of foreigners, with permanent residents and local companies being allowed to purchase property for their own stay upon approval.

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