Real estate is any land on which there is the construction of a building, water, trees, home, etc. These are the tangible things on the ground. It can be used for residential, industrial, and commercial use. singapore new condo for sale is involved in buying, selling, and rentingproperties.
Challenges faced by Real Estate Sector
- Rates: The high land prices in metro cities make the affordable housing project infeasible.
- GST:Under theconstruction project, GST has been reduced but is relatively high.
- Property Prices: After demonetisation, property prices have been falling.By introducing the RERA Act 2016, there has been more transparency in funding and curbing black money in Real Estate.This led to a drop in the prices of the properties.
Issues in Real Estate Sector
- The approval process is too lengthy for project clearance.
- The land titles are not clear.
- The involvement of black money.
- Construction work is not moving forward,or the developers have left the project before the completion.
- After purchasing the land, the developer changes the building plans and layout.
- The legal disputes in Real Estate have to be solved in court.
- During a pandemic, there has been no progress in the work.
Effect of the downturn in the Real Estate Sector
- Economy: After introducing the RERA act, the economy has become unstable because real estate is the second-largest contributor to the GDP. If a building mustconstruct on the land, it must use steel and cement in its making. When the real estate sectors see the downfall, other sectors like steel and cement companies know the downfall.
- Job Crisis: It led to a job crisis; no one is getting work in this sector.The economy is going down. The real estate sector is the second-largest contributor to labour. Thus, it leads to a job crisis.
Singapore new condo for sale is facing loss after the demonetisation and the Covid-19 crisis. It is pretty evident by its growth.No labour is allowed to work during the pandemic.Real estate has contributed so much to providing shelter to the people, but after curbing the use of black money in real estate, people hesitate to buy the land. Many units have remained unsold.The government should remove the penalty from the developers so that they start working and the economy will become stable. The property prices have been reduced, and GST is relatively high on the land.