View of bungalows at the prime Sentosa Cove enclave in Singapore.
Singapore recorded the lowest premium for waterfront homes among 12 major cities around the world due to its plethora of waterscapes, according to a new report from property consultancy Knight Frank.
“Analysis shows there is some correlation between the volume of water and the premium generated. Where water is in abundance – island properties such as Hong Kong and Singapore – the premium is smaller.”
“Singapore registers the lowest premium (7.7 percent) and here our research confirms that sea views command a higher premium than river views,” it said.
Meanwhile, waterfront homes in Sydney commanded the highest premium of 89 percent, particularly those that offer panoramic views of Harbour Bridge or the iconic Sydney Opera House.
“From its iconic New Year celebrations to the starting point of the Sydney to Hobart yacht race on Boxing Day, residents are treated to expansive views of one of the world’s best waterscapes,” said Knight Frank’s director of research Michelle Ciesielski.
Completing the world’s top five places with the highest premium for waterfront residential properties are Australia’s Gold Coast (64.1 percent), Perth (53.2 percent), Dubai (50.7 percent) and Paris (48 percent).
On the other hand, the bottom five are Melbourne (30.4 percent), London (30 percent), Berlin (28 percent), Monaco (11.1 percent) and Singapore, where waterfront homes registered a premium of 7.7 percent.
In terms of nationalities, the top five seekers of waterfront homes are those from the UK, the US, Canada, Germany and France.
By category, Knight Frank revealed that residential properties facing harbours command the highest premium of 59.1 percent, followed by beachside dwellings with 58.5 percent. Houses along rivers posted a premium of 36.8 percent, while lakeside residences have the lowest premium of 32.7 percent.
“Water has global appeal, by producing negative ions it boosts energy with research showing it has significant health benefits,” explained the property consultancy. It added that for the Chinese, waterscapes are important considerations when purchasing a home due to Feng Shui.
“Water signifies wealth in Feng Shui and can bring good fortune and prosperity. It should be slow moving and clean, rather than stationary and stagnant. The property should be elevated above the water and if on a river, should ideally be positioned on a winding section where the pace of flow is slower. Fast moving streams and rivers are often avoided as this suggests wealth is rolling away,” it said.
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Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email email@example.com