The capital city of Brunei, Bandar Seri Begawan, has recently been ranked among the top 10 least expensive cities in the world for home buyers. This ranking is according to a report by Numbeo, which is a crowd-sourced database of global prices and living conditions. This ranking is a testament to the affordability of the city, which is becoming increasingly attractive to foreign property investors.
Bandar Seri Begawan has a population of just over 200,000 people and is known for its strong economy, low crime rates, and stable political environment. The city has a mix of modern skyscrapers and traditional architecture, with cultural landmarks such as the Jame’Asr Hassanil Bolkiah Mosque and the Royal Regalia Museum.
According to Numbeo’s report, Bandar Seri Begawan’s housing prices average at $84.48 per square foot. This ranking places the city as one of the least expensive in the world for housing, and significantly lower than other cities in the region such as Singapore and Hong Kong. The affordability of the city is due to a combination of factors such as low cost of living, stable political environment, and government policies that are favorable for foreign investors.
One of the main factors driving foreign investment in the city’s property market is its stable political environment. Brunei has a constitutional monarchy and is known for its stability and low levels of corruption. This makes it an attractive destination for foreign investors who are looking for a stable and secure environment to invest their money.
Another factor contributing to the city’s affordability is its low cost of living. According to Numbeo’s report, Brunei has one of the lowest costs of living in the world, with prices for groceries, restaurants, and transportation below the global average. This low cost of living has been a major factor in attracting expatriates to the city, many of whom are attracted to the high quality of life that the city offers.
The Brunei government has also introduced policies that are favorable for foreign investors. In 2014, the government introduced the Strata Titles Act, which allows foreigners to own strata properties such as apartments and condominiums. This has helped to boost demand for residential property in the country, particularly among expatriates who are looking to invest in a stable and affordable market.
In addition to the Strata Titles Act, the government has also taken steps to encourage foreign investment in the country’s property market. The Brunei Economic Development Board has implemented a range of measures to promote investment in the country, including tax incentives and streamlined procedures for setting up businesses. These measures have helped to create a favorable investment climate for foreign investors.
Despite the affordability of Bandar Seri Begawan’s property market, there are some challenges facing the city’s real estate sector. One of the main challenges is the limited supply of affordable housing, particularly for the local population. Many families in the city struggle to find suitable homes due to the shortage of affordable housing.
The government has recognized this issue and has taken steps to address it. In 2017, the government launched the National Housing Scheme, which aims to provide affordable housing to low-income families. The scheme offers subsidized loans and grants to eligible families and has been successful in increasing the supply of affordable housing in the country.
Another challenge facing the city’s property market is the limited availability of financing options for foreign investors. Unlike other countries in the region, such as Singapore and Malaysia, Brunei’s financial sector is relatively small and underdeveloped. This has made it difficult for foreign investors to obtain financing for their property investments and has limited the growth of the market.
