The rise of $100 million net worth individuals: Why Singapore's luxury property market still has room for growth

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At this stage of cooling measures, there’s growing concern that even Singapore’s stable climate might put off foreign property investment. The Additional Buyers Stamp Duty (ABSD) rate for foreigners now stands at 30 per cent; this is against a backdrop of soaring interest rates, and restrictions against land ownership (e.g., foreigners can’t own freehold landed properties without special permission). A...

At this stage of cooling measures, there’s growing concern that even Singapore’s stable climate might put off foreign property investment.

Along with that comes risks such as political issues and the US national debt that’s approaching USD 31 trillion . For those who feel that the USD could never collapse, a recent example of the British Pound makes for grim reading. “They might say, yes, if I stay in my home country, I’m going to be paying high tax rates on my worldwide income, worldwide capital gains, I’m going to pay estate tax when I pass away, I’m going to pay gift tax when I make gifts.

So far, the signs seem clear that Singapore’s wealthiest sons and daughters still look to properties at home; and as Singaporeans get richer, our luxury developers still have a growing domestic market.You’ll notice that the US cities make up the bulk of hotspots for centi-millionaires: this includes New York City, San Francisco, Los Angeles, Chicago, and Houston.

It certainly doesn’t help that Americans can avoid ABSD, and that US citizens are less likely to pick China and India due to rising political tensions.A 2021 Citibank report estimated that 10,000 family offices have been established across the world in the past two decades, a 10x increase from the early 2000s.

She also pointed out that Hong Kong, once Singapore’s closest rival in terms of real estate investment, is increasingly falling out of favour as political dissent mounts.

 

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