Singapore is ranked the 7th hottest spot for buying overseas properties by the world's ultra-high net worth individuals (UHNWIs), according to “THE GLOBAL LUXURY RESIDENTIAL REAL ESTATE REPORT 2015” by Wealth-X and Sotheby's.
Driving factors for demand are low interest rates and an environment of political, social and economic stability.
Buyers profile of UHNWI in Singapore:
- Average age - 59 years old;
- Median net worth - US$105m;
- 16% of UHNW owners are not based locally;
- Over 25% of buyers are from finance, banking, and investment sectors;
- Top foreign owners of Singapore properties come from Indonesia, China, and India.
"Singapore is a very attractive luxury real estate market with a thriving economy and international marketplace," - Philip White, President and CEO of Sotheby's International Realty Affiliates.
"Luxury residential real estate" is property valued at more than US$1,000,000 and typically owned by UHNW individuals.
As at end 2014, global UHNWIs numbers 211,275, up 6% from 2013 with US$30 million or above in assets with property investments worth over US$1 million.
Top Cities for UHNW residences:
1. New York
3. Hong Kong
4. Los Angeles
5. San Francisco
6. Washington D.C
• Purchasing decisions are driven by:
• Emotional value
• Practical value
• Business value
• 7% of the world’s UHNW fortunes are made through real estate.
• The number of properties held by UHNW individuals outside their home countries are increasing. Top 3 favourite locations are the United States, United Kingdom and Switzerland.
• New York is the city with the highest number of UHNW-owned residences in the world.
• Monaco has the highest density of foreign-owned UHNW residences - 83%.
• UHNW Chinese and Russian multiple homeowners are young and typically self-made. They play increasingly important roles as buyers of luxury residential real estate around the world.
Contributing factors of a residential real estate hub
• Locations with a concentrated business environment – often related to the finance industry
• Proximity to the world’s largest markets
• Strong and consistent historical economic performance
• Stable real estate markets and infrastructures
• High living standards, taking into account such factors as weather, health, leisure-
activities and transport