According to Knight Frank’s recent annual wealth report, Singapore’s ultra-rich individuals grew from 4,206 to 4,498 in 2022. Singapore is ranked 8th globally in terms of fastest growing ultra-high net worth individuals. It is forecasted to grow by 17.7% and reach 5,293 individuals in 2027.
32% of APAC’s high-net-worth individuals plan to increase allocations to property. In the same report, 43% have also mentioned that capital appreciation is the biggest goal this 2023.
Most of these high-net worth individuals are either retired or nearing retirement age. This means they are likely on the lookout for retirement-related properties in cities that offer exceptional lifestyle opportunities. This includes cities ranging from Italy, France, and Western Australia and the wine regions in New Zealand. d.
Globally, Singapore is the 5th wealthiest city according to the latest World’s Wealthiest Cities report by international investment migration firm Henley & Partners and global wealth intelligence firm New World Wealth.
The recent increase in the Additional Buyers Stamp Duty (ABSD) has driven a lot of Singaporeans to consider overseas purchases. Singaporeans buying their 2nd residential property will have to pay 20% instead of 17%.
For their 3rd and subsequent property, they will now have to pay 30%, instead of 25%. This is part of the efforts of the Singapore government to moderate investment demand in the Singapore property market.
Australia’s proximity to Singapore makes Singaporeans the 3rd biggest foreign buyers of Australian properties. 36% of Singapore’s ultra-high-net-worth individuals are also looking to buy a property in Australia soon according to Knight Frank’s Attitudes Survey.
Singaporean professionals are drawn to Sydney because it’s a global financial hub while Singaporean students and their families are keen on Melbourne because of the great universities there and high quality of living.
According to Google, search volume has been increasing for certain keywords such as Melbourne House Prices (900% increase year on year!) and Houses in Sydney (900% increase, 3 months’ time period).
The UK has long been a popular overseas property investment hotspot for Singaporeans because a lot of them send their children to the UK for overseas studies. Getting a UK property gives their children the convenience of living close to prestigious universities.
If they buy the property before their children go to university, they can take advantage of the rising demand for student accommodation. According to the UK’s largest student landlord, rental hikes are expected to rise from 4.5% to 5% in the 2023/2024 academic year.
The weak pound and attractive UK property valuations has contributed to the continual purchase of UK properties by Singaporeans.
For the UK, search volume for keywords such as UK Property Market, Houses for Sale London have also risen by 900% year on year according to Google.
New Zealand is also a rising property hotspot for Singaporeans, especially in Queenstown. One big reason is that along with Australians, Singaporeans can buy property in New Zealand without approval from the Overseas Investment Office.
In addition, they can easily get financing from New Zealand banks and other financial institutions.
New Zealand property agents have also noted that Singaporeans want properties close to the airport so that they don’t have to drive far during winter conditions, as well as for privacy and security reasons.
All these examples and trends highlight the opportunity for Overseas Property Developers to market to Singapore’s wealthy, which is expected to continue to grow especially with the influx of wealthy investors from China and from the rest of the world becoming permanent residents of Singapore.
Singapore’s love affair with property will continue to be true.
If you’re keen to penetrate the Singapore market, partner with DREA today to help you market your properties to this lucrative market segment.
With our ready-made targeting set of Singapore property investors, we can help generate high quality leads for you to close.