Property investment does have its benefits whether you do it locally or overseas, the rental income is one of the biggest of them all. Indeed, that does mean tenant management, but if you are buying property in Singapore, many property management companies out there would gladly do this for you at an affordable fee. So while you sit back and relax, your returns would continue to trickle in.
Though you can consider local property investments, it would be more advantageous to think about overseas. Foreign investments in the real estate market are on the rise, with Singapore being the heart these days. It is the leading real estate hub in Asia and an important market across the globe. Singapore attracts foreigners from all over the world in the residential, commercial and luxurious real estate sectors. Here is why you should think about buying property in Singapore as a foreigner.
1) Home prices are on the rise
A research conducted by Morgan Stanley suggests Singapore property market to be the most promising one in 2018 among the Asian countries. Home prices are expected to rise by around 5% to 8% this year as well as the next, because demand is increasing whereas the supply is a bit tight.
2) You can expect good returns when buying property in Singapore
The biggest reason why you or anyone else should be buying property in Singapore is good returns. Singapore is a small country with limited land. However, the population is increasing and so the housing demand is rising. So prices also increase over time. If you make an investment now, you would enjoy a big fortune in the years to come.
3) Singapore’s currency is performing well
Currency stability and strength is an important consideration when investing in a foreign country, and Singapore’s currency checks off both. Even if the prices don’t appreciate too much, the returns are still good. For instance, if a Malaysian investor bought a luxury condo for $5 million back in May 2013, and sold it for $5.5 million in May 2017. Over the four years, he earns a profit of $500,000 as well as the currency appreciation of 41% from RM$2.39 in May 2017 to RM$3.08 in May 2017 on the Singaporean dollars against the Ringgit over the capital gain and down payment received from the investment.
Considering the future outlook, the currency will likely remain stable as long as development is rapid and Singapore can maintain its pace.
4) The government and political situation is stable
Singapore has achieved a lot since its independence in 1965. What was just a swampland previously has now turned into a bustling metropolis. And all of this is because of the government. Since the situation in the country is pretty stable all these years and for many years to come, investment should remain secure.
5) Interest rates are low
The offered mortgage interest rates in Singapore are lower than neighboring countries like Malaysia and Indonesia, another feature that puts this country on the list of foreign investments. Real estate market is worth billions, and buyers from all over the world, try to get a slice.
6) You have so many choices to choose from
Singapore real estate sector covers a wide range of property types. Right at the top of the classification, you have residential, commercial, and luxurious sectors. As you go deeper into each of these types, you come across more choices such as seafront bungalows, condos, offices, historical shophouses and warehouses. All these choices make it easier for you to find something that is within your budget and generates the returns you want.
Please note that as a foreign buyer, you cannot invest in all property types. Talk to a real estate agent, and they’ll guide you more about properties that you can buy in Singapore.
7) Singapore’s location is strategic
Singapore is placed at a strategic location on the world’s map, which has played a notable role in the real estate sector bloom. The country is usually not affected by natural disasters so your property investment is least likely to suffer from damages that can arise because of quakes, floods and other similar events.
8) You’ll come across real estate agents who are easy to deal with
The property buying process is tedious, involving so many hassles and a significant amount of time, especially when conducted overseas. But if you have a property agent with expertise in helping foreigners acquiring investment property by your side, you can eliminate all the hassles and reduce the overall time of purchasing an investment property in Singapore to around five days or less.
Conduct a thorough search and you would come across Singaporean real estate agents, who specialize in buying/selling homes for foreigners. Share your requirements and budget with them, and they’ll quickly start showing you properties that fulfill your needs. Once you decide the property you want to invest in, they’ll get done with all the paperwork shortly, in the very same trip.
But once again, buying property in Singapore is easy only when you choose a real estate agent that is an expert in assisting foreign buyers. Also be very clear about your location, features, expected returns and budgets.
9) You’d be able to enter and exit without any hassles
Entry into Singapore is quite easy, especially for business men. Investors who step onto the Singaporean soil can easily enter and exit through various passes and visas. The government has implemented some schemes that favor qualified foreign buyers and investors, so there are usually no entry issues to deal with.
10) Singapore offers many facilities
Singapore is filled with amenities, and is among the most advanced countries in the world. The country offers so many facilities to its residents and businesses, leading to a high end lifestyle. People from all over come and work in Singapore, and often look around for rental properties. Businesses also try to find office space for their companies. Investors try to lure both these segments when buying property in Singapore, considering both residential and commercial properties that would generate impressive returns.
11) You’ll find property management companies for your investment properties
Managing tenants can be a pain, but not when you are renting out your foreign property in Singapore. Conduct a little research, and you would come across companies who’d manage them for you. Most of the property management companies would find tenants, collect rents from them, handle their issues, maintain your property and do anything else that is required. You may be charged a small fee, but that can be waived off in some cases.
So will Singapore’s real estate market lure you to invest? Give us a call, and let’s discuss what your returns would look like.
At Century 21, we are one of the few Singapore estate agencies offering exceptional real estate services that are personalized and customized to meet the diverse needs of international high net-worth individuals. We provide international HNWI a one-stop service for property investment and acquiring Singapore luxury real estate. Check out our Global HNWI Services now!
Author: Nic Ee
Nic is the Executive Director and Key Executive Officer (KEO) of CENTURY 21 Property Agent Singapore Pte Ltd. Nic starts his real estate career in 1995. He focuses in providing real estate services specifically to international high net-worth individuals and corporate clients. His expertise includes luxury home finding, property investment planning & acquisition, managing buy to let property, expat home finding and tenant representation for office space.