Singapore Ranks 2nd Property Investment Destination for Ultra-Rich Asians

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Singapore has topped the list as one of the choice investment destinations in the world for ultra-wealthy Asians. Property consultancy Knight Frank’s annual Wealth Report has indicated that Singapore ranks second after Britain as the go-to destination for ultra-high net worth Asians searching to invest in residential properties around the world. According to the survey, ultra-high net worth inviduals are characterized by a net worth of at least US$30 million, which excludes their primary residence.

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Real estate remains a popular investment for the ultra-wealthy, who often allocate a large percentage of their wealth to property investments, especially in comparison with equity investments, for example.

According to Alice Tan, Knight Frank Singapore's head of consultancy and research, the percentage of foreign home buyers in Singapore is expected to increase in 2017 to as much as 3 percent on a high estimate. Tan reveals that interest from Indian and Malaysian buyers in local property has been significant, despite a weaker Malaysian ringgit.

Tan explains, “They may look at capital preservation as the Singapore dollar is stable."

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Likewise, China’s current capital controls have not deterred Chinese buyers, and Tan believes that demand from Chinese buyers will not significantly lessen. The 11th edition of the annual report noted a significant growth in the percentage of the ultra-wealthy in Asia, which could in turn pose the region as the new hub of ultra-high net worth individuals, and possibly ahead of North America.

Currently, Asia has approximately 46,000 ultra-wealthy individuals, against North America’s 73,100. The gap is expected to close significantly by 2026, however, as the percentage of Asia’s ultra-rich is slated for an estimated 91 percent growth against North America’s mere 31 percent increase.

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