It appears that the recent surge in new condominium developments sales is a blessing, despite the fact that things could develop into a bubble.
But the quite attractive terms offered by the developers seemed to verify that this could only be speculative demand. Within eight weeks, a 15 percent payment and a 5 percent deposit is commonly expected without additional payment until the TOP or Temporary Occupation Permit period. This could take about two to three years.
Basically, those who book these apartments preferred a 20 percent investment of the property price. In two years’ time, these people may eventually flip the property and earn a sizeable income.
According to the Urban Redevelopment Authority, 1,825 new apartments were sold for the previous month, evidently increasing from 1,673 for the month of May and 1,216 for the month of April. About 20,000 units could be expected to sold for this year if this pace is maintained, and a good number of them could have their TOPs in about two to three years’ time. However, a crunch could follow as buyers place their properties on the market ahead of paying the full amount.
The surge in sales boils down to the Singaporean herd mentality, though it’s not necessary to follow the clique. Nevertheless, people should give careful consideration on purchasing a 1,000 square feet condominium that costs about $1 million.