Real estate is the land, the soil, the buildings, the air rights above the ground, and the subterranean rights below the ground. The term “Real Estate” means real or physical property. “Real” comes from the Latin root res, meaning things. Others say it comes from the Latin word rex, meaning “royal,” since kings used to own all the land in their kingdoms. Singapore’s residential property consist of HDB from the government, condos and landed.
Four Types of Real Property
There are four types of real property:
Residential real estate includes both new construction and resale homes. The most common category is single-family homes. There are also condominiums, apartment communities, townhomes, duplexes, triplexes, quadruplexes, high-end homes, multi-generational homes, and vacation homes.
Commercial properties include shopping centers and strip malls, medical and educational facilities, hotels and offices. Multifamily properties are often considered commercial, even if they are used for residential purposes. This is because they are used to generate income.
Industrial properties include manufacturing buildings and land, as well as warehouses. The buildings can be used for research, production, storage and distribution of goods. Some buildings that distribute goods are considered commercial real estate. Classification is important because zoning, construction, and sales are handled differently.
Land includes undeveloped land, working farms, and ranches. Subcategories within undeveloped land include undeveloped land, early development or reuse, subdivision, and site assembly.2 Learn more here Land Broker Transactions.
How the Real Estate Industry works
The term “real estate” also refers to the production, purchase, and sale of land. Real estate affects the U.S. economy because it is a critical driver of economic growth.
The construction of new buildings is a component of gross domestic product. It includes residential, commercial, and industrial buildings. In 2018, real estate construction contributed $1.15 trillion to the nation’s economic output. That’s 6.2% of the U.S. gross domestic product. That’s up from $1.13 trillion in 2017, but still down from the 2006 peak of $1.19 trillion. Back then, housing accounted for a whopping 8.9% of GDP.
New home construction is a critical category. It includes construction of single-family homes, townhomes and condominiums. The National Association of Home Builders provides monthly data on home sales and average prices. New home sales data is a leading economic indicator.3 It takes four months to establish a trend for new homes sold.4
In Singapore, URA controls the private residential, HDB controls the public housing and JTC controls the industrial.
Real estate agents help homeowners, businesses, and investors buy and sell all four types of properties. The industry is typically divided into specialists who focus on one of the types.
Seller’s agents help find buyers, either through the Multiple Listing Service or through their professional contacts. They set the price for your property by using comparison listings of recently sold properties, known as comps. They can help you spruce up your property so that it looks its best to buyers. They will assist you in negotiating with the buyer and help you get the highest price possible. You can find more sales agent services here.
Buyer’s agents provide similar services to home buyers. They know the local market. This means they can find a property that meets your most important criteria. They also compare prices, which is called “comparison shopping.” This allows them to guide you to areas that are affordable. Buyer’s agents negotiate for you and show reasons why the seller should accept a lower price. They help with the legal aspects of the process, including title searches, inspections and financing.
Real estate agents must first take the exams called Real estate salesperson exam. They will then be able to help buyers and sellers transact their properties