Ultra-rich property investors drawn to Singapore
Singapore scored particularly well on the lifestyle component, where it ranked third highest alongside Chicago, and after New York and San Francisco.
Mar 8, 2018
It takes fifth spot in Knight Frank report; third-most favoured by Asian investors
Genevieve Cua
Singapore remains a favoured destination for property investments among the world's ultra wealthy, taking fifth spot in a global ranking published in The Wealth Report 2018 by Knight Frank.
It was the third-most favoured country for Asian investors, after Britain and the United States.
The rankings were taken from an attitude survey within the report. Singapore also took fifth spot, the only Asian city among the top five, in the City Wealth Index, a ranking of the cities that mattered most to the ultra wealthy.
The index was based on an aggregate of scores on four parameters for cities - wealth population and its rate of growth; property investments worth at least US$10 million (S$13.1 million); lifestyle; and future economic performance.
Singapore scored particularly well on the lifestyle component, where it ranked third highest alongside Chicago, and after New York and San Francisco.
The lifestyle component included the number of luxury hotels, the number and quality of leading restaurants, average visitor spend, and education measured by the number and quality of universities in the city.
Mr Nicholas Holt, Knight Frank's Asia-Pacific head of research, said: " Singapore's standout ranking is a reflection of its strong performance across all criteria, with an especially impressive showing in lifestyle, considered increasingly important by the world's international community."
On the Singapore property market, Ms Alice Tan, Knight Frank's director and head of consultancy and research, noted that there has been a significant uptick in purchases by foreigners in the luxury segment in the Core Central Region, which includes districts 9, 10, 11 and Sentosa.
The hike in buyer's stamp duty (BSD) imposed following the Budget on Feb 19 is unlikely to affect property purchases below $2 million, she added.
The stamp duty was raised from 3 per cent to 4 per cent on the value of a home in excess of $1 million.
"It may have a greater impact on the luxury segment because we are looking at a $5 million or $20 million home. It will have a certain bearing on some locations on the fringes of districts 9 and 10. But for most prime locations like Nassim or Ardmore, the ultra wealthy may not see the BSD as a deterrent," Ms Tan said.
Mr Tay Kah Poh, Knight Frank's head of residential services, said he remains optimistic about the prospects for the luxury home segment: "The pickup (in 2017) has been quite firm. Statistics show the ultra rich have been picking up bargains in the high-end sector a year before recovery."
The firm's Wealth Report found that the number of ultra-wealthy individuals - those with US$50 million or more in net assets - rose by 10 per cent or 11,630 individuals last year. This takes the global population of ultra wealthy to 129,730.
Asia has overtaken Europe in terms of the absolute number of ultra wealthy. North America (44,000) remains at the top spot, followed by Asia (35,880) and Europe (35,180).
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