Ultra-rich buying frenzy supports Singapore home price growth

SINGAPORE (Aug 11): The ultra-rich are eyeing luxury across the world and exclusive and high-end properties here are one of the investments that they are looking at, reported Bloomberg.

Supported by the “frenzy buying” of ultra-rich individuals which amounted to US$24 billion (RM102 billion), Singapore’s home prices surged 4.1% in the first half of 2021.

The report, citing Nicholas Mak, head of research and consultancy at APAC Realty Ltd unit ERA, said Singapore had been on international investors' radar, thanks to the promise of casinos and resorts’ developments back in 2007.

“That flurry was tamed by the global financial crisis and property curbs. The difference now is that there are more newly minted ultra-rich people, especially from China and India,” he said.

An example of mega wealth is the Park Nova development launched by Hong Kong-listed Shun Tak Holdings with a showcase of 54 luxury apartments. 

“It was a display of buyers’ wealth as Rolls-Royce Cullinan and Ferraris descended upon the site, 10 minutes by foot from Singapore’s famous shopping belt Orchard Road,” said the report.

Singapore-based PropNex Realty head of the luxury team Dominic Lee recalled that he had never seen so many luxurious cars at one place; all the three multi-million dollar penthouses were snapped up, with prices as high as S$34.4 million.

The report said privacy is another key reason that drew international investors to the Lion City.

Buyers could use trusts to conceal their identities during the transactions, preventing their information being disclosed to the public and even the government. 

However, this also complicates the process for developers to screen the buyers’ background to avoid money laundering activities.

The report, quoting a spokesperson from the Urban Redevelopment Authority, noted that the Singapore government is looking at reviewing existing laws to strengthen requirements for developers to guard against money laundering activities in the sale and purchase of uncompleted private properties.

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