The funny thing about the 1980’s is that a lot of people thought that the stock market blew up back then. A lot of people thought that the upward trajectory of the stock market began in the 1980’s and things have gotten more and more expensive since then. Well, that’s quite a mouth full because if you look at real estate prices in the US, sure they start going up after the economic reforms of the early 80’s, but they really blew up in the late 1990’s. Let’s not confuse these.
The 1980’s were great especially because of the Smith’s and other musicians, but it wasn’t all that hot in terms of the economy. In fact, in the early 80’s, there was a really crippling recession. I bring this up because if you’re looking at Singapore real estate property and you have your eye on one of the hottest condominium projects in this city state, you may be shocked by the Twin Vew Price. You may be thinking that you’re paying too much for a piece of Singapore real estate. Your mind might be wondering as to if there are other wandering the region, looking for better bargains.
Let me put it this way. Sure, that Twin View Price that you have been quoted may seem high right now. However, you have to look at it in its proper context. You have to understand that given the huge demand for premium Singapore real estate, you will be able to command a fat premium for rent. In other words, expatriates, chief executive officers and top level executives from multi-national companies from all over the world seeking to establish a foothold in Asia by basing their operations in Singapore will pay a premium for your place. They don’t want to buy a permanent spot. In their minds, leasing is the second best option.
This is where you come in. Considering the small amount of top tier, first class accommodations in Singapore, you can bet that the tight supply and hot demand equation is going to work in your favor time and time again. What I’m trying to say here in the simplest term possible is that the Twin Vew Price you have in your hands may look very pricey right now. It may even seem astronomical, however, if you look at the big picture and the rate at which lease rates are going up, it’s going to look cheap soon enough.
Back in the 1980’s when the Smiths and Morrissey were really big, there were a lot of premium real estate properties in New York and elsewhere that seemed very pricey at the time. Now, when we look back, they’re laughably cheap. We’re talking about 5th Avenue places selling for a tiny fraction of what they sell now.
When it comes to real estate in certain parts of the world, there’s only one direction to go and that is up. Always remember this because you may think that the flat you’re thinking of buying in Singapore cost an arm and a leg. But you have to view the price in context. If you play this game right, your asset can be self liquidating.