1. Overall economy in a country
For a country which remains in developing like Singapore and Malaysia, that is enjoying a lot of immediate foreign investment which is understood as ” FOREIGN DIRECT INVESTMENT ( FDI )” the growing rate of the country rate is fairly high. Development is focus on particular town and city location. since the FDI are high, so it result in high economy growth in the nation. High economy grow are going to directly affect the property prices. It cause the price of the property to rise.
2. Stock Market as well as Global Economy
Stock market is then reason for the property price massive boost. Usually the person who is earning in stock market will render another investment that is property investment. This is primarily because property investment is a different long term investment which can generate long term revenue. Since many people are going to buy real estate throughout bull market, it cause it price to raise but when in bear market situation, the price will not go down, it would maintain at the same level.
3. Material supply
Materials of a construction will directly affect the real estate price. Lately, the price of steel, sand and also cement is increasing. This increment will probably lead to the increase of the newly developed and launched project. The increment of material merely will affect new unit and even won’t affect old unit.
4. Demand and supply of a place.
This occurs in a city where lots of people go in. When a location offer a lot of job opportunities it will certainly draw many rural individuals toward it. When many individuals went into it, it cause the location to be highly demand on property. This render to property price to raise.
5. Modification of government policies
Government play a significant role in real estate price. Occasionally government will wages lots of charges when buying a real estate, it trigger the price to become cheaper or vice versa. At some point salary increment among civil servant may also encourage people to purchase real estate. It make property cost to increase.
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