Is Singapore Property Still A Good Investment Choice Long Term? A Quick Overview



Is Singapore Property Still A Good Investment Choice In The Long Term?
Are we blindly believing that properties in Singapore will just keep going up?

Follow the smart dollars they say – One of the main reasons why private equity, funds and the global wealthiest are still buying buildings and real estate here.


Singapore properties will almost always result in nett positive returns whether in terms of capital appreciation or foreign exchange returns over the mid-long term.


Why?


1st, A simple check on currency pairing histories would reveal that the SGD has a clear track record of appreciation against the world’s major currencies over the past decades (10yrs Vs USD, JPY, GBP, AUD, EUR etc).


Not to mention against our neighbours in the north and south.


And we can witness similar currency strengthening measures in another small country in Europe that has similar geographic and economic conditions as us, which attracts the global elite too – Switzerland.


Why is this so and are you certain this will likely continue to be the case in the future?


Yes i am pretty certain that history will likely repeat itself as it is crucial to the survival of Singapore given how much we rely on imports.


From water, food, raw ingredients, oil to talent & manpower.


Hence, the Singapore Dollar has to strengthen continually given our resource limitations and reliance on foreign imports, manpower and the world's perception of our nation as an ideal destination for living, investment and business.


Of course, it is not all that simple.


Simply having such tight monetary policy does not guarantee that there is demand for the Sing Dollar or the manoeuvrability for our Monetary Authority of Singapore (MAS) to strengthen our currency as it deems fit.

Our country’s overall appeal as a global investment & business launch pad for Asia, honed over half a century by our forefathers foresight and proficient management skills, is the reason why the Sing dollar is well in demand by the world.


Despite not paying high interests on deposit rates (1% on fixed deposits vs many times higher in other markets like Australia, NZ etc), investors understand that the appreciating history of our currency means their assets here grow in the long term.


Much better at the end of the day than the interest collected on a depreciating asset in many other parts of the world.


And this is why, briefly, savvy foreign investors and institutional funds continue to pour billions into Singapore real estate, bonds and equities and something that Singaporeans ought to know and be confident about.