![](\"http:\/\/i2.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2016\/02\/A-palpable-chill.png?fit=740%2C492\")
\nRegional counterparts\u00a0are in no state to\u00a0take advantage of the Lion State\u2019s \u2018money avalanche\u2019<\/p>\n
\nRegional counterparts\u00a0are in no state to\u00a0take advantage of the Lion State\u2019s \u2018money avalanche\u2019<\/p>\n
Singapore is a model property market for the Southeast Asian region and I always advise regional investors to watch it closely to observe how it affects the investment climate of other regional markets.
Regional counterparts\u00a0are in no state to\u00a0take advantage of the Lion State\u2019s \u2018money avalanche\u2019 Singapore is...<\/p>\n","protected":false},"author":1,"featured_media":3453,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-3452","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-news"],"jetpack_featured_media_url":"https:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2016\/02\/A-palpable-chill.png?fit=740%2C492&ssl=1","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-TG","jetpack-related-posts":[{"id":140727,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/asia-pacific-funds-overtake-global-investors-as-they-increase-bets-on-regional-property-markets\/","url_meta":{"origin":3452,"position":0},"title":"Asia-Pacific funds overtake global investors as they increase bets on regional property markets","date":"December 17, 2023","format":false,"excerpt":"\r Global investment in Asia-Pacific property markets stagnated this year while the proportion of capital from within the region galloped, with the trend likely to continue next year, according to Urban Land Institute.\r \r Source : South China Morning Post\r Read more...Asia-Pacific funds overtake global investors as they increase bets\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":172272,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/singapore-based-investors-now-the-top-non-local-buyers-of-hong-kong-office-assets\/","url_meta":{"origin":3452,"position":1},"title":"Singapore-based investors now the top non-local buyers of Hong Kong office assets","date":"July 28, 2026","format":false,"excerpt":"\r Singapore-based investors have become the largest group of non-local buyers of commercial properties in Hong Kong, drawn by the sizeable correction in the prices of distressed assets amid a slump in the city\u2019s office segment, according to Colliers. The demand from Singapore was likely to remain steady in the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":110264,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hong-kong-property-investors-snub-singapore-in-favour-of-cheaper-options-elsewhere\/","url_meta":{"origin":3452,"position":2},"title":"Hong Kong property investors snub Singapore in favour of cheaper options elsewhere","date":"August 28, 2019","format":false,"excerpt":"\r Singapore\u2019s housing market isn\u2019t turning out to be the beneficiary many may have thought from Hong Kong\u2019s increasingly fraught protests. Instead, investors are looking to cheaper property markets like Malaysia, Thailand and Taiwan.\u201cPeople here tend to think there are only two cities in the world \u2013 Hong Kong and\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10916,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/singapore-is-looking-sweet-as-foreign-investors-turn-away-from-hong-kong-amid-rising-china-political-influence-ubs-says\/","url_meta":{"origin":3452,"position":3},"title":"Singapore is looking sweet as foreign investors turn away from Hong Kong amid rising China political influence, UBS says","date":"April 19, 2016","format":false,"excerpt":"\r New foreign real estate investors may turn their attention away from Hong Kong to other developed markets such as Singapore in a bid to remove uncertainties that include political influence from China, says UBS Asset Management\r \r Source : South China Morning Post\r Read more...Singapore is looking sweet as\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":78425,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/singapores-overseas-property-investment-soared-40-in-2017\/","url_meta":{"origin":3452,"position":4},"title":"Singapore\u2019s overseas property investment soared 40% in 2017","date":"January 30, 2018","format":false,"excerpt":"\r Singapore\u2019s overseas real estate investment surged by around 40 percent to a record US$28.4 billion (S$37.2 billion) in 2017, making it the fifth-biggest source of capital globally, after the US, Hong Kong, China and France, reported Business Times. 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\nToday I see that the Singaporean market is in the doldrums. It is not because of lack of demand \u2013 locals and foreign investors can\u2019t have enough of any type of property in this high-octane economy.
\nRather, the country\u2019s government finally succeeded in its efforts to drastically cool the local property sector.
\nAfter a series of contentious measures, loan limitations was the final straw that brought the market down. Coupled with a draconian additional tax of 15 percent on foreigners, the luxury property segment gave away somewhere between 10 and 15 percent of its value.
\nMore significantly the number of deals has been reduced to a trickle.
\nOn the one hand, cooling measures averted a market bubble. Some of the policies, such as a unit-flipping sales tax, meanwhile, are expected to keep the market healthy in the longer term, maintaining the Lion City\u2019s reputation as a sound investment haven.
\nMore: The last 5 decades of SG\u2019s property industry under Lee Kuan Yew
\nBut on the other hand, many investors \u2013 local and foreign \u2013 who don\u2019t see any returns in the foreseeable future started diverting their investments overseas, translating into billions of US dollars pouring out of Singapore.
\nAlas, neighbouring markets are not in the best position to take advantage of this money avalanche.
\nWith the record fall of the Malaysian ringgit against the Singaporean dollar (less than 3 to 1), Malaysia became a very affordable property market. Its volatile political situation, however, makes it far from ideal for foreign investors. Additionally Malaysia\u2019s government is keen to control household debt, and its own cooling measures are expected to continue in the coming years.
\nThe much publicised oversupply in Iskandar Malaysia \u2013 a developing economic zone targeting mostly Singapore-based buyers, who perceive the area as a Singaporean suburb \u2013 has also made investors think twice before crossing over to the Malay Peninsula.
\nIt also appears that some Malaysians move their money elsewhere, mostly to Singapore to buy residential properties despite the high tax on foreigners.
\nEconomically Indonesia is not in a much better position than Malaysia, with its currency, the rupiah, depreciating by around 40 percent in the last three years. While that may seem like good news for investors, the Indonesian residential market is still not open to foreign buyers.
\nMore: Perhaps it is time\u00a0for Singapore to cut back on its cooling measures
\nGoing through another slowdown (but known for its economic resilience) is Thailand, which is a very attractive destination for holidaymakers. Nearly 30 million foreign visitors are expected to visit the kingdom in 2016, keeping the Thai hospitality sector active despite political woes. But not much activity is being witnessed in other property segments.
\nIn short, the region\u2019s property markets are not in a particularly advantageous position to absorb the billions of dollars spilling out of Singapore. But let\u2019s take a look in our figurative crystal ball to make a few predictions\u2026
\nThe \u201cumbrella protests\u201d in Hong Kong might have prompted millionaires to relocate to Singapore instead of the Chinese territory, according to a WealthInsight report released in November 2015.
\nThe report predicts that the population of millionaires will grow at a faster rate in Singapore than Hong Kong in the next five years: 18.3 percent versus 15.6 percent. One in 35 Singaporeans is now a millionaire, increasing by 17 percent from 130,000 in 2010 to 154,000 today, and reaching 188,000 in 2020. They collectively hold USD806.3 billion in net wealth (defined as one\u2019s assets minus debts or liabilities). There is a large influx of Indian and Chinese millionaires, who love Singapore\u2019s financial markets and high quality of life.
\nMy take is there are many more unaccounted millionaires as a substantial number of local and foreign investors own multimillion-dollar properties with sizeable part of mortgages mostly or fully repaid. These holdings mostly do not register on the global wealth radar.
\nSingapore also remains the easiest place to do business, according to the World Bank\u2019s \u201cDoing Business 2016: Measuring Regulatory Quality and Efficiency\u201d report, which covers 189 economies. The dynamic city-state held onto its business-friendly top ranking from last year.
\nMore: Why now might be a good time to buy residential property in Singapore
\nMoreover, Singapore placed fifth in the Global Power City Index, a ranking of 40 global metropolises on attracting talented individuals and creative enterprises from around the world conducted by the Institute for Urban Strategies of The Mori Memorial Foundation.
\nWhile these are positive tidings, the cooling measures continue to keep the market in a deep freeze, with Singaporeans and foreign investors alike waiting for signs of a thaw.
\nA degree of hope lies with the Singaporean currency, which has given back around 16 percent against the US dollar since topping out in 2011 (although much of the move was made after the devaluation of the Chinese yuan last year). That translates to cheaper Singaporean real estate for foreign buyers.
\nCitizens of the United States and Switzerland, as well as those of Norway, Iceland and Liechtenstein are eligible for Additional Buyer Stamp Duty (ABSD) remission under a Free Trade Agreement. Simply put, they can buy into Singapore\u2019s residential market without additional taxes.
\nWith the arrangement facilitating discounts of up to 15 percent discount, in addition to the strength of foreign currencies against the Singapore dollar. now might be an optimum time for wealthy foreign investors to enter the attractive Singaporean luxury property market.
\nFor mere mortals, however, the situation looks set to remain static for a while longer.
\nRead next: Is Singapore\u2019s real estate industry ready to roar again?
\n
\nSource : property-report.com
\nRead more…How Singapore has avoided losing out to neighbouring property markets<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"