Global Investors Eye Singapore Property Market

December 04, 2019 Singapore

Known Big Investors, Tycoons, and Company Founders Shift to Singapore Property Market

The Singapore property market appears to be on the radar of foreign real estate investors – be it residential, commercial or retail. Because of geopolitical turbulences faced by many countries currently, the Lion City is seen more so than ever as an ideal investment opportunity by foreign investors.

One notable purchase in the Singapore real estate market was by the billionaire founder of well-known restaurant-chain Haidilao, Zhang Yong. The “hotpot” king is known to have bought a 15,884.29 square foot SG property along Gallop Road for S$27 million in 2016.

James Dyson, the billionaire founder of household appliances and technology giant Dyson, also made the news with his S$73.8 million purchase of luxury Penthouse at Wallich Residence, a real estate development by GuocoLand. Reports indicate that Dyson bought another pad opposite the Singapore Botanic Gardens. People speculate that the exclusive resort-style bungalow at the Botanica Residence cost over S$41 million.

Furthermore, there has been speculation that Facebook co-founder Eduardo Saverin is a mega-investor in the Singapore property market too. The S$230 million mansion at Nassim Road appears to be one of his property assets. It is a two-storey real estate property that comes with a swimming pool, tennis court, plus 100-metre road frontage.

What draws high-net-worth individuals to invest in Singapore real estate? Here are some possible reasons:

Fair-Valued Property Market

According to the UBS Global Real Estate Bubble Index 2019 data on property prices and cost of living in global cities, Singapore remains in the fair-valued zone for the third year in a row. Buying a 60 sqm. (650 sq. ft.) apartment costs the equivalent of 12 years of salary in Singapore. This property price-to-income ratio is on par with major cities, whereas affordability from 15 years in Paris to three years in Chicago. More importantly, the fair-value classification means that investments remain safe from any impending bubble bursts.

Friendly and Low-Interest-Rate Environment

Singapore presents an opportunity not only to local residents but also to foreign investors due to a tax regime that offers competitive tax rates and no capital gain taxes. The system makes it attractive for those who are looking to gain from steady increases in property prices.

Moreover, Singapore signed Free-Trade-Agreements with five countries, under which the nationals and PRs from these countries are eligible for Additional Buyer’s Stamp Duty (ABSD) Remission. The five countries are Iceland, Liechtenstein, Norway, Switzerland, and the United States of America. The agreements allow foreign investors to make gains from their investments in the Singapore property market.

Safe Haven of Stability

Political, social and regulatory stability in Singapore is a key factor driving investors to relocate, as is the government’s pro-business stance. Given the uncertainties afflicting other countries globally, Singapore stands out even more as a safe haven for investments. This applies not only to investments by businesses but also by high net-worth individuals seeking to plant roots and reside in the city-state.

Singapore Property Market Trumps Other Countries in Terms of Real Estate and Development

Successful company owners have marked Singapore as an ideal place to settle. They find the “Little Red Dot” a promising place to run their business and likewise to take a stake in the property market. Sustainable price growth backed by a stable and pro-business environment makes the Singapore property market soar.

Interested in owning a Singapore property? Explore Yazhou Property for a list of luxury properties such as Van Holland by Koh Brothers Development. Van Holland is a freehold luxury condominium development sited next to Holland Village – Singapore’s bohemian lifestyle hub. An upmarket location, with endless dining selections and shopping opportunities. There are also prestigious schools and medical facilities in the vicinity. Van Holland has easy access to both public transportation and highways.

Front view of Van Holland by KBD.
The facade of Van Holland by KBD.

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