Singapore (Common Wealth) _ Singapore is an appealing option for investors due to its capacity to attract global enterprises and vast ecosystem of services.
Singapore has long been a major capital exporter, and for the past five years, the city-state has been vying with Hong Kong to be Asia’s main financial hub.
Global mobility has long been considered a must-have for wealthy investors, fueling demand for second passports, visas, and citizenship as competition to recruit the world’s most affluent increases.Singapore’s appearance in the top ten rankings for the quantity and quality of post-Covid airline connections in 2022 demonstrates the city-state’s continually expanding global relevance.
While the UK, EU, and US continue to attract a large number of globally mobile, wealthy residents, Singapore is emerging as a significant wealth centre.
Singapore’s sevenfold increase in family offices alone demonstrates the magnitude of the prize for exchequers. Since the epidemic began, the number of single-family offices that provide wealth management has nearly tripled, owing partly to an inflow of wealthy Chinese families.
Singapore, already positioned as a regional leader in education and secure living, as well as a broad, pro-business economy, has made particularly large investments in recent years to strengthen its foothold as a global wealth hub, most notably through tax breaks that encourage the establishment of family offices.
Singapore is creating a very appealing tax and regulatory structure that will attract not only more Asian, but also worldwide, wealthy residents. Around 75% of Singapore’s assets under management (AUM) come from various outside sources, with North America and Europe each providing roughly 17 to 18% of the city-state’s AUM and Asia accounting for 33%.
In 2022, a total of 296 luxury non-landed properties were sold, a significant decrease from the 487 transactions reported the previous year, owing to declining supply. Family-sized apartments are especially popular. In 2022, prices will rise by 3.9%.
Given that outbound capital has always been relatively UK-centric — and will continue to be so until 2023 — prime central London values remain attractive relative to levels.
This year, a considerable number of wealthy individuals are projected to purchase second residences in the UK capital.
According to Nicholas Keong, Head of Private Office at Knight Frank Singapore, Singapore is unique in its offerings as a worldwide wealth management and financial hub grounded on political stability, low corruption rates, and transparent public institutions. It will continue to be an ideal foundation for enterprises and investors looking to capitalize on Asia’s massive development potential in the future decade. The United States and Australia are also big pulls; Perth is only five hours away, and Melbourne and Sydney are about eight. They all have the education, climate, and way of life to entice additional investment.
We’re seeing more and more wealthy families trying to establish themselves in Japan. Low borrowing rates and a weak yen, combined with gross returns of 4% to 5%, are attracting purchasers to the Japanese multifamily market. It is difficult to get into the market because institutions that take on development risk prefer to hold on to stable assets, but when they do become available, there is fierce competition from family offices.
Singapore, a developed country, has the world’s third-highest GDP per capita (PPP). Singapore is known as a tax haven, and it is the only country in Asia with a AAA sovereign credit rating from all major rating agencies. It is a significant aviation, financial, and maritime shipping hub, and it is routinely recognized as one of the most expensive cities for expatriates and foreign employees to reside in.
Singapore ranks highly in important social variables such as education, healthcare, quality of life, personal safety, infrastructure, and housing, with an 88 percent homeownership rate. Singaporeans have one of the world’s highest life expectancy rates, fastest Internet connection speeds, lowest infant mortality rates, and lowest levels of corruption.
