IS THE CORE CENTRAL REGION OF SINGAPORE THE BEST PLACE TO BUY PROPERTIES?
Are you considering investing in real estate in Singapore? The Core Central offers a perfect place for business and residential needs. Available data shows that the area has outperformed the rest of the region when it comes to growth of real estate and indeed, the overall growth.
WHERE IS THE CORE CENTRAL?
The Core Central surrounds the banks of the Singapore River and Marina Bay. Speaking of the Marina Bay, it is a reclaimed land that has been transformed into a new business hub in the heart of Singapore. This little city is definitely a place to be if you are looking for the best when it comes to real estate in Singapore - It has a distinctive waterfront, high-rise commercial towers that harbor retail shops, hotels, and even luxury apartments. You will be able to find some of the Singapore's most iconic buildings and landmarks in this area. Some of the state-of-art infrastructures you can see in Marina Bay, which like we said above, is surrounded by Core Central City, includes the Singapore Flyer, the Esplanade Theatres, the Marina Barrage, and Reservoir as well as the Marina Bay Sands.
To understand why this area is so important in the history of Singapore and why you should consider buying a property in the Core Central City, it is important that we take a short look at the history and development of this city.
The CBD comprises of the downtown core which is located at the southern tip of Singapore. This area served as a hub for commercial activities as far back as 1819 when a trading port was founded in the area. In later years, government buildings and offices begin to pop up in the area and this led to massive growth of the region. During this time, the reclamation activities to gain some land for building from the banks of the Singapore River also started. An example of the success of the government land reclamation activities was the establishment of main commercial thoroughfare of the Shenton Way which was built in the 19302 by the British colonial government on the land reclaimed from Telok Ayer Basin.
Unfortunately, just like every other developing city, there was a flood of immigrants both from the neighboring towns and cities as well as from other countries such as Chinese immigrants. This led to overcrowding, run-down commercial buildings, unsanitary squatters and slums, and congested traffic. The decay of the new city was made worse when the government enacted the 1947 Rent Control Act to prevent tenants from excessive charges but prevented the property owners from getting enough incentive to motivate them into maintaining or improving their properties.
But things were to change from the 1960's, thanks to the election of the People's Action Party (PAP) government. The newly elected government embarked on an extensive urban renewal and resettlement program which was focused on transforming the decaying city and return it to its former glory. The government made good on their promise to build a new modern city center that would not only support the country's industrialisation effort but also support the economic development of Singapore and make it one of the best economies in the Asian region.
Apart from the government's success at re-developing state-owned properties, private property owners and developers were also encouraged and supported to develop commercial and office buildings. This was done through the government's sale of site programs. The government took a step further to suspend the rent control act to give landlords more incentive to develop their property. In some cases, the government had to compulsorily acquire some lands.
What is today referred to the Central City does not only encompass Tanjong Pagar, Anson Road, and Raffles place but have extended to Marina Bay - one of the most beautiful places in Singapore.
WHY INVEST IN REAL ESTATE IN CORE CENTRAL REGION?
No doubts, the Core Central Region property market is quite different from the Rest of Central Region and Outside Central Region.
A report from SRX Property in the beginning of this year shows that the Core Central Region outperformed the rest of the islands when it comes to the resale prices for non-landed private homes. The report goes further to show that the volume of resale transaction of private apartments and condos in the Core Central rose 52.5% to 2048 units in 2016. This figure is better and higher than both the Rest of Central Region (24.2%) and Outside Central Region (18.2%) combined.
Hot Demands/Huge Resale Value
The sale of condos and other types of properties in the Core Central without a doubt has a hot demand. This means that it has huge resale value. Estimation by property Management Company in Singapore showed that the resale price index for private apartments and condo units in the Core Central Region has 1.8% year-on-year gains while the rest of the region is witnessing a decline.
Access to Amenities
Easy access to amenities is one of the reasons why properties in this region are hot in demand and one of the reasons why you should own a property in the region. You will never find it hard to find a good hospital, recreational centers, schools, and holiday facilities. You will get the best of Singapore when you have a property in this region.
Resistant to Oversupply
In 2016, most of the regions such as RCR, and OCR suffered oversupply of real estate which led to the decline of prices causing property owners excess loss. However, CCR was least affected or not affected at all. Owning a property in the area means that the price will continue going up and you will rent or sell at a profitable gain whenever you are ready.
Better Business Opportunities
The Core Central Region is most inhabited by expatriates and foreign workers. One reason for this is the availability of tons of industries in the area. You will have a better chance of doing business when you buy a house in the region. You will live among expatriates and in close proximity to numerous companies, businesses, and government agencies.
The Core Central Region is indeed the pride of Singapore. If you are looking for a place to invest in the real estate or own a property, this is indeed one of the best places to do that. You can't find the opportunity offered in this region anywhere else in Singapore.