Singapore’s Real Estate Value – Long-Term Stability

Singapore’s real estate value should not dip by more than 10 percent in 2009 and is expected to continue it its upward climb in the long-term. Government financial reserves ensure that ongoing and future infrastructural developments shall proceed unimpeded despite the problems that the world economy now faces.

Such infrastructural developments are seen by the government to provide the necessary impetus to attract higher-value international investments that shall, in turn generate more jobs with higher paying salaries. In a clear tone of optimism, Minister Mentor Lee Kwan Yew was recently cited as having said that property values were bound to go up in the long run. And as the government regulates the availability of land, real estate experts are inclined to agree with him.

Since the beginning of the present Gobal Economic Downturn, real estate value has remained relatively stable. And in some cases, these values have even increased.

Real Estate Industry Stabilized by the Government

As in all economics downturns of the past, not all industries are struck down. Where some industries are down-sizing, others are expanding. This is where the governments quick response and flexibility to changing economic trends pays dividends. The governments willingness to help individual and corporate businesses ensures minimum foreclosures that would otherwise have resulted in vacant office and retail space.

A country whose only natural resources are manpower and regional strategic positioning relies on the continuance of commerce. Therefore, the government acknowledges such continuance of commerce and avidly supports all investments into Singapore as these investments would contribute to its economy and create jobs for its citizenry.

Government Support for New Investments

Singapore’s large cash reserves allow it to concentrate on infrastructural developments during times of economic uncertainty, in preparation for the upward climb on the unending roller coaster called the the world economy. Such strategic planning has enabled Singapore to not only maintain its competitive edge, but has also enabled it to surge ahead of its competitors. One such example is the Marina Bay Sands Casino Project.

Singapore real estate value

As reported in the news, the successful bidder for the Marina Bay Casino project is the Las Vegas Sands Corporation. Recent news have reported a 94% drop in its shares since its successful bid to build a casino at Marina Bay. And though Las Vegas Sands struggles to fund its S$3.85 billion project, the Singapore government has helped broker an ensemble of 8 local banks that provides up to S$5 billion in loans to the former.

This commercial venture will create 10,000 jobs for Singaporeans, as well as make Singapore a more attractive travel destination.