Demand, supply and the question of value

IN THE Singapore market, where entry cost is a high barrier, is investing in property now a poor proposition? 

Housing prices are at a high and only just starting to flatten. Transaction costs have grown significant for investors both local and foreign with higher stamp duties in place. Supply of land for housing appears to be ample despite the country’s limited land size - the state periodically reclaims and rezones huge tracts of land to be repurposed for housing. The possibility of government intervention is also always on the agenda, to keep a lid on prices and rein in buying.

As Leslie Yee writes in The Level Ground, any investor may hope for demand to constantly outstrip supply in order to achieve high returns. Still, even with plenty of supply in the pipeline, there is value in Singapore property. Read his column to see why.