SINGAPORE'S HOT PROPERTY AT COOL PRICES: TIPS FOR BUYERS

The global recession is as good a time as ever to buy luxury property. With Singapore's developers reducing prices for new property built and local banks lowering mortgage rates, lots of attractive deals await you.

Singapore's Property Market in 2009

The luxury end of Singapore's property market has been transformed in recent years, as the government has succeeded in attracting high-net-worth individuals from abroad to relocate here. For instance, there are no restrictions on non-citizens purchasing residential units in apartment buildings and condominiums, and many Russian s have already done so. Singapore's perfect infrastructure, crime-, drug- and litter-free environment and overall fantastic appearance in recent years have made it quite popular among them.

Singapore's investment climate has cooled down significantly due to the uncertainties in global financial markets, which has resulted in a sizable 25 per cent drop in pricing for condo units as compared to 2008. Lower prices for good properties now represent excellent opportunities for buyers. However, as the year progresses, interest in condos is returning and soon prices may start rising again. So, if you wish to buy an apartment at a prestigious address, wait no more.

There is a number of things you should know when buying or renting property in Singapore:

1. Types of Residential Property

HDB flats are low-cost government-built housing, built by the Housing & Development Board (HDB). 87 per cent of Singapore's population lives in HDB flats. (pic. 1)

Condominiums, or condos for short, are privately developed and owned multi-unit dwellings, as opposed to the state subsidized housing. While housing units in condos are owned individually, the common areas and facilities – playgrounds, swimming pools, tennis courts, saunas, barbeque pits, gyms, etc.  – are owned collectively.
(pic. 2)

Private Apartments are similar to condos but offer limited facilities which always include security. They are more likely to be in older buildings than condos.

Shophouse/Terrace House/Semi-Detached Townhouse

Shophouses and terrace houses consist of several attached units in a row. Shophouses (pic. 3) though are usually narrower and taller with smaller windows and a more traditional appearance, while terrace houses are usually wider with bigger windows and tend to be more modern. Semi-detached houses consist of two units that share a common wall, with each unit usually having a small garden. (pic. 4)

Detached Houses are what is sometimes called landed property or bungalows. They are free-standing buildings (sharing no wall with another house) and have a garden. (pic. 5)

Black-and-Whites, with their distinctive white walls and black woodwork, are colonial houses that previously served as housing for British army officers. While stylish, with big-rooms, high ceilings and filled with history, they often lack air conditioning and cable televisions connections. (pic. 6)

2. Ownership Categories of Residential Property

In Singapore, residential property falls under one of 3 categories of ownership: government controlled 99-year leasehold, 999-year leasehold and freehold.

The leasehold period starts from the date that a developer purchases a piece of land. It is common for five to seven of the 99 or 999 years to have elapsed by the time you buy a unit. The upside of leasehold is that prices in such developments are much lower than those of similarly-sized freehold properties.

3. Prestigious Districts

While Singapore now has a six-digit postal code system, most property agents still refer to the old postal district numbers. In the city-state, there are three main prime residential districts, where the majority of well-to-do Singaporeans live:

• 9, with Orchard Road, Singapore's premier shopping and wine-and-dine area;
• 10, which runs along Holland Road and boasts the most exclusive and expensive properties in Singapore, such as good class bungalows and high-end condos and apartments; and
• 11, parts of Bukit Timah area.

District 5 (on the West Coast) and district 15 (on the East Coast) are particularly popular with expatriates who enjoy staying near beaches and parks and prefer a sea view to that of concrete jungles of downtown areas.