High net worth Chinese nationals purchasing properties in Singapore made the headlines this month after a Chinese national paid a whopping $36 million for a luxury house on Paradise Island, in Sentosa Cove.
The 21/2-storey bungalow – at 14,983 sq ft and with a built-area of around 17,000 sq ft – had one of the larger land areas in the development.
Luxury property in Singapore has turned into an international product with the same quality of luxury houses as in major cities like Hong Kong, though they cost less, said Jimmy Koh, an economist at UOB.
“It’s similar to brands like Prada and Louis Vuitton, all around the world the standard of the product is the same. The difference in Singapore compared to other places like Hong Kong and New York is that the property here is about 50 per cent cheaper,” he said.
Real estate company DTZ reported that for housing demand among foreign nationalities, Mainland Chinese’s shares increased to 17 percent in Q1 2010 from 15 percent in Q4 2009. About 21 percent of them purchased homes in the CBD area, prime districts of 9 to 11 and in Sentosa Cove.
According to some real estate agents, affluent Chinese are usually businessmen from Shanghai and Beijing with an office in the country or few factories in China. Some of them purchase properties in Singapore even if it has a 99-year leasehold period because they want their kids to attend international or government schools in the country.