The economy has not been doing well in recent times with global uncertainties such as Brexit and the trade wars between China and the US. The political unrest in Hong Kong is also in the global spotlight. In Singapore, among people there has been talk of an impending recession. A recent survey conducted showed that about half of the respondents felt Singapore’s economy was not doing well. While a recession has not truly hit Singapore, there has been reports of slow growth and future uncertainties.
However, there are different sides to the situation and there are still areas in which Singapore is thriving, such as in the property market.
Private Property Prices in Singapore Continue to Rise
In a recent survey in October, 8 in 10 Singaporeans believe private property to be too expensive. Yet, despite such sentiments, the private property market is flourishing. Private housing prices continue to rise in this quarter after reaching their highest in the last 5 years, CNA reports. This signifies a consistent growth that is promising for investors. Additionally, new homes sold hit the highest in a single quarter in more than six years.
Singapore: Rising Star
“Singapore is now ranked No 1 for real estate investment prospects in terms of price increases in 2020.” (Source)
With the weakened confidence in Hong Kong, Singapore then stands out as an alternative for property and business owners. Indeed, Singapore has certainly felt the effects of the situation in Hong Kong. Extra cash has been flowing into Singapore and out of 120 companies with offices in Hong Kong surveyed, 9 in 10 consider Singapore to be the best option if they were to move. This is in line with a KMPG survey done that illustrated Singapore is the top choice for MNCs to set up their regional headquarters.
“In the first nine months of 2019, about 315 private condominium units in the prime core central region were bought by foreigners – out of which only 8 units were bought by Hong Kong buyers, while 97 units, or 31 per cent, were bought by China nationals, which made up the largest foreigner buyer group in Singapore.” (Source)
The articles speculated that mainland Chinese nationals could be finding an alternative to Hong Kong, wanting to avoid paying taxes in their homeland or shifting funds. This then lead to their purchase of properties in Singapore.
What Makes Singapore Attractive?
Singapore has always been a key player in the Southeast Asian region and, as mentioned, it is clearly in the top ranks in Asia to do business and live in. A perfect blend of modernity and a multitude of cultures, Singapore is in the limelight both globally and in the region. Many businesses are setting up a base in Singapore and with them, expats come to live in Singapore as well.
“Singapore is an attractive destination to both local and foreign ultra-high net worth individuals, offering security, a world-class education system and developed infrastructure and medical facilities.” Knight Frank Singapore’s head of research Lee Nai Jia commented. (Source)
Singapore has many things going in her favor from a stable political scene that is free from corruption, a strong currency to good diplomatic relationships with other countries. It is not surprising that this makes Singapore a popular destination whether it be for business or leisure.
Conclusion
The property market is looking promising even in an economic downturn. More importantly, Singapore is receiving the spotlight for property investment as well as a place to do business in. Property investors, locals and foreigners alike, can afford to have confidence in the property investment market.
