Asia’s ultra-rich rank Singapore as region’s top choice for luxury homes

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Demand for personal homes in Singapore is predicted to get well in 2021, based on a Knight Frank Wealth Report. The Straits Times/Asia News Network

SINGAPORE — Singapore has turn out to be one of many world’s most sought-after places for shopping for funding homes as its safe-haven fame has been additional strengthened by efficiently managing the coronavirus pandemic and supporting companies.

According to Knight Frank’s Wealth Report, whereas personal residence costs in Singapore’s prime districts dipped 0.2 per cent in 2020 as journey restrictions stored overseas patrons away, demand is predicted to get well this 12 months as such properties stay comparatively inexpensive, and as the vaccine roll-out continues and borders reopen.

Knight Frank’s survey of over 600 personal bankers, wealth advisers, intermediaries and household workplaces, discovered “a change in strategy” by ultra-high web value people – these whose web wealth exceeds US$30 million (S$40 million) – attributable to international uncertainty within the wake of the pandemic.

“As a result, they are investing in additional homes domestically wherever they can, followed by second homes in cities and countries that best fit their needs in the new normal,” stated Ms Victoria Garrett, head of residential property in Asia-Pacific at Knight Frank.

Singapore’s luxury residential market is the top Asian territory of choice for the ultra-wealthy in Asia, after the UK, US and Australia, famous Mr Nicholas Keong, head of residential worldwide venture advertising at Knight Frank Singapore.

“Home buyers from India, Japan, Malaysia and South Korea rated Singapore in their top five locations when considering investment homes abroad. The manner in which Singapore’s government was able to financially support businesses as well as put in place measures to control the spread of Covid-19 further enhanced Singapore’s reputation as a safe bastion for investors,” he stated.

This might augur nicely for luxury residence costs this 12 months, with 26 % of these surveyed planning to purchase a brand new residence in 2021, up from 21 % in 2020. “This demand could help fuel price rises of up to 7 percent in key markets” this 12 months, the report stated.

Moreover, not like Auckland, Shenzhen, Seoul and Manila, the place common residence costs ended between 10 % and 18 per cent greater final 12 months, costs of prime homes in Singapore dipped 0.2 % and gross sales plunged 20 % attributable to a scarcity of latest launches and as journey restrictions stored overseas traders away.

Nevertheless, Singapore continues to be an oasis for investments attributable to its secure political atmosphere as nicely as the in depth measures to mitigate any recurrence of the outbreak, the report stated.

This is borne out by a ten.2 % enhance within the variety of ultra-high web value people in Singapore final 12 months to three,732, regardless of the recession and an general drop in median family revenue from work of two.4 %, Ms Wendy Tang, group managing director of Knight Frank Singapore, stated.

“Given that South-east Asia has one of the fastest-growing middle-class demographics in the world, Singapore is well positioned to ride the growth. As such, the number of ultra-high net worth individuals in Singapore is forecast to grow by about 31 percent between 2020 and 2025 to 4,888,” she stated.

Mr Leonard Tay, head of analysis at Knight Frank Singapore, added: “Singapore also has a smaller ultra-high net worth individuals population compared against other Asian countries in the list. With a lower base, a relatively decent growth in quantum results in a higher percentage increase.”


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