Crazy rich Asians seek Singapore luxury properties

Singapore’s effective COVID-19 containment efforts have provoked the interest of those looking to invest in homes  

According to South China Morning Post, Asia Pacific will see a growth in ultra-rich individuals in the near future, which will likely merit Singapore’s property market, seeing that the city-state has effectively handled the coronavirus pandemic.  

A Chinese citizen from Fujian Province reportedly bought a sea-facing bungalow in Sentosa Cove’s elegant residential enclave, for more than SGD39 million (USD29.2 million), one of Singapore’s latest big-ticket property deals.  

Near the city, This Week In Asia believes that a 5,070 square feet luxury penthouse at South Beach was purchased by a Chinese investor last week. 

Moreover, Taiwan’s Tsai Family, owner of the Hong Kong-listed snack manufacturer Want Want China Holdings, bought all 20 units of a new condominium in one of Singapore’s most elite neighbourhoods last month for SGD293 million.  

These three transactions suggest that Singapore continues to be a pique of interest to wealthy Asian investors seeking to put down their money or to find a second home.  

Observers believe the city state’s effective handling of the coronavirus pandemic has stimulated further property interest, as well as the upcoming boom of ultra-high-net-worth individuals in Asia Pacific.  

Singapore’s Urban Redevelopment Authority said that figures of non-landed private homes sold to foreigners this year have recuperated to pre-pandemic levels.  

There were 91 such transactions in January 2020, and demand slumped at the peak of the pandemic, but numbers have bounced back to 112 in January this year, stabling at 100 last month.  

Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie, said: “More buyers are entering the market in recent months as they may be anticipating prices of properties to pick up further this year, especially since the global economic outlook is growing more favourable.”  

Sun added that Chinese citizens made up most foreign buyers, roughly 20 to 35 percent of purchasers each month.  

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Head of research of Asia Pacific at Knight Frank Christine Li said that the inquiries she received proposed that buyers from China were ready to park money in Singapore once the threat of COVID-19 has eased and borders were to fully open.  

“Its domestic sociopolitical climate has been stable, unlike Seoul and Hong Kong which have seen civil unrest in recent years,” Li added. 

Victoria Garrett, the head of residential property in Asia Pacific at Knight Frank, added, “They see Singapore as a safe-haven investment destination due to its stable political environment, high transparency in conducting business, world-class infrastructure, and high-quality infrastructure.”