Singapore among Asian cities in property investors' sight: report

It joins HK, Sydney and Tokyo as the only Asia-Pacific names in a list dominated by US cities

Thu, Mar 07, 2019


SINGAPORE is ranked ninth globally in attracting major property investments, joining Hong Kong and Sydney as the only Asia-Pacific cities to make the top ten, according to a report.

North American cities dominated by scooping up six places among the leading names, with New York in pole position, followed by Los Angeles, Washington DC and Chicago.

Knight Frank's City Wealth Index looked at data on property investments worth US$10 million and above by private individuals or family offices across commercial and residential markets.

Rankings take into account both the volume of investment as well as the number of different nationalities who have made investments.

The report also included Knight Frank's Prime International Residential Index, which tracks the movement in luxury prices across the world's top residential markets.

The value of the 100 luxury residential markets edged up on average by 1.3 per cent last year, easing from 2.1 per cent in 2017. Manila experienced the highest jump at 11.1 per cent in 2018.

Singapore saw prices rise by just over 9 per cent, marking the high point of its current market cycle, according to senior director and head of research at Knight Frank Singapore Lee Nai Jia.

"A slowdown in 2019 looks likely, although solid economic fundamentals should prevent prime price growth from entering negative territory," he said.

This comes on the heels of the cooling measures put in place by the Singapore government in July last year, which included a hike in stamp duties and tighter loan-to-value limits.

Aside from investment, the index also ranked cities in other categories, such as wealth and lifestyle, in addition to an overall ranking aimed at singling out "global powerhouses".

In the overall rankings, London pipped other global cities to take top billing, while New York, Hong Kong and Singapore were in second, third and fourth spots respectively.

In the wealth category, Asian cities - namely Hong Kong, Beijing, Singapore, Seoul and Shanghai - clinched five of the top ten positions.

This category looks at the current population of high net worth individuals, or those with net assets of over US$1 million, and ultra high net worth individuals (UHNWIs), or those with net assets surpassing US$30 million.

Asia is expected to experience the fastest growth in UHNWIs between 2018 and 2023, expanding 23 per cent from 48,245 people in 2018, the report highlighted.

Factors underpinning the global growth in UHNWIs include returns from traditional and alternative investments, real estate as well as growth conditions in major economies.

Meanwhile, in the lifestyle category of the index, London - with its five-star hotels and quality of its universities - was at top spot. However, Singapore rose up the ranks to tie with London.

The report also singled out cities of the future which are expected to attract property investors in the years to come - namely Bengaluru, Hangzhou, Stockholm, Cambridge and Boston - based on factors such as wealth forecasts, economic growth, infrastructure and innovation.