Singapore property still a top draw for Asia’s ultra-rich

Singapores property market remains high on the agenda of Asia’s ultra-rich, notwithstanding the cooling measures still in place.

Its commercial properties are a top consideration for Asian ultra high net worth individuals (UHNWIs) keen on this asset class, moderately ahead of the UK and the US.

Singapore’s residential market is the second most likely place for Asian UHNWIs to own an overseas home, after the UK, according to a wealth report out on Wednesday.

Such findings came on the back of last year’s 3. 4 per cent rise in Singapore’s luxury residential prices – luxury units being defined as at least S$2, 500 per square foot in prime districts 1, 9, 10 and 11.

There are some 46, 080 UHNWIs, each having a net worth of over US$30 million excluding their primary residence residing in Asia-Pacific, based on data from New World Wealth.

An analyst believed that Singapore continues to charm especially into the Asian community to live, do the job and set ” up ” businesses. Schisme 9 and 10 are highly preferred by the really wealthy presented their excellent location, close proximity to high quality features and schools.

The overall slide in property prices due to the government’s cooling measures has also enhanced the value proposition of Singapore property, with demand for property gradually returning as seen in the improved transaction volumes last year. Singapores 15 per cent additional buyer’s stamp duty on foreigners is looking cheaper compared to Hong Kong’s 30 per cent. Meanwhile, there is risk of China introducing more property cooling measures to rein in prices, especially in first-tier cities.

The results were based on responses from almost 900 of the world’s leading private bankers and wealth advisers, representing over 10, 000 clients with a combined wealth of around US$2 trillion.

Among investable asset classes, real estate investments came top of the list for Asians’ wealth allocation at 29 per cent compared to the global average of 24 per cent. With the ultra-rich citing wealth preservation as the most important factor in investment decisions, Singapore’s attraction as a safe-haven amid global uncertainties will continue to play out.

Chinese nationals were the top foreign buyers in the residential market here since Q4 2015. Sustained buying interest from Chinese nationals is expected to sustain irrespective of recent prevent on capital outflows. The following, coupled with better buying attraction from Malaysians and Native american nationals the 2010 season, could lift the proportion of foreign household buyers to twenty-eight per cent the 2010 season from 26 per cent on 2016.

Singapore’s 23rd search engine ranking on the Leading International Personal Index (PIRI), which rails the value of high class homes on 100 critical locations world-wide, on the back side of the 3. five per cent within luxury household prices, echoes the great value offrande that it is providing to the ultra-wealthy. It was on 81st job for 2015 due to a good 2 . one particular drop on luxury household prices the fact that year.

The exact value proposition turns into more conspicuous when viewed vis-a-vis the surge on prices on key places in Cina and Queensland.

Luxury household prices on Shanghai beat property a / c measures by using a 27. five per cent upturn last year, setting the city on the top bar on PIRI; two different Chinese places Beijing and Guangzhou had been ranked second and third for the respective 18. 8 per cent and twenty six. 6 per cent growth. London’s 6. three per cent drop in luxurious home prices translated into a 92th placement on the PIRI.

It was the 3 per cent hike in stamp duty for additional homes released in Apr 2016, rather than the UK’s decision to leave the EU, that reined in demand in London. But the end end of 2016 noticed an uptick in product sales volumes and improved belief as the market readjusted towards the new taxes burden.

20 prime city markets were selected and it was determined, based on the common luxury home value for every city and the exchange price at the end of 2016, how many square metres US$1 million can buy in each city.

As of end-2016, the most costly prime homes – generally defined as the very best 5 per cent of each marketplace by value – ended up being Monaco, Hong Kong, New York, Manchester and Geneva, followed by Singapore.

Adapted out of: The Business Situations, 2 Strut 2017