Aerial view of luxury apartments in Keppel Bay, Singapore.
For US$1 million (S$1.4 million), you can purchase 452 sq ft of prime real estate in Singapore (or a small studio apartment), making it the world’s seventh most expensive place to buy luxury property, noted findings from Knight Frank’s Wealth Report 2016.
The city-state fell two places from last year’s report due to property price declines. According to the firm’s Prime International Residential Index, luxury prices here dropped by 2.1 percent in 2015. This year, Knight Frank expects prices to slide further by 3.3 percent.
“Singapore luxury property prices have dropped for several years now. The reasons for the fall are still in place – overall slowing economy, volatile financial markets, rising rates, and government cooling measures,” said Tay Kah Poh, Executive Director and Head of Residential for Knight Frank Singapore.
In the report, Singapore was named the number two Asian city, behind Hong Kong, with the most number of super-rich individuals. In 2015, there were 2,360 ultra-high net worth individuals (UHNWIs) living here, with this figure expected to grow by 48 percent over the next 10 years.
Alice Tan, Research Head at Knight Frank Singapore, said “a conducive business environment, clear regulatory framework and a progressive ecosystem of financial and business services have augmented its status amongst the wealthy as a preferred location to live and do business in Asia”.
Despite the various measures put in place to curb excessive investment by foreign buyers, property investment remains a favoured asset allocation among the super-rich. In fact, 79 percent of those surveyed would invest in Singapore and UK homes.
The report also found that the three main concerns among UHNWIs in Singapore are succession / inheritance issues, the global economic situation, and stock market volatility.
The report polled 400 private bankers, including 30 from Singapore.