Expats often enjoy living in Singapore because of its high standard of living, excellent healthcare, excellent transportation system, and diverse, multicultural population. Singapore is also known for its stability, low crime rate, and efficient government.
According to an InterNations Expat Report of 2022, figures indicate that a majority of expats find it increasingly comfortable to integrate within the domestic lifestyle. Currently, the country places third (3rd) in the Expat Essentials Index, coming in after the United Arab Emirates (UAE) in second place (2nd), and Bahrain in first place (1st).
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The country has over the last few years welcomed droves of expats from foreign nations, with a large percentage coming from Europe, the United States, and several Asian countries. Among these foreigners, many find it overwhelmingly easy to deal with local bureaucratic norms, with 63% supporting this statement, compared to 40% globally.
Additionally, many expats appreciate the city-state's tropical climate, which allows for year-round outdoor activities and easy access to nature. Singapore also has a strong economy and is a major business hub in Southeast Asia, which makes it an attractive location for professionals looking to advance their careers.
With a diverse multicultural population, and a thriving economy, investing in a Singapore property offers buyers a range of benefits outside the standard scope of practice. While there are a plethora of reasons to consider before making any big purchase, here is a look at some of the benefits of investing in real estate in Singapore.
Stable Economy
Singapore has a strong and stable economy, which makes it a safe and secure place to invest in property. The country's GDP has been consistently growing, and unemployment is low. As a result, property prices are likely to remain stable and increase over time.
Globally, countries have been struggling to find their footing as macroeconomic problems persist, geopolitical tension increases, and the cost of living crisis deteriorates economic recovery only further.
Compared to some of its richest counterparts, including the U.S., UK, Canada, Germany, France, Spain, and Italy, Singapore has seen its economy grow by 3.8% in 2022. The preliminary figures provided by the Ministry of Trade and Industry showed that estimates for the year stood at 3.5%, down from 7.6% in 2021.
While global conditions are looking ever so grim for the months ahead, countries can use Singapore’s growth as a barometer to help them determine how and where investment efforts should be increased to stabilize national economic recovery.
Unlike other nations, where central banks have tightened monetary policies at an aggressive rate, the city-state managed to control red-hot inflation with four consecutive rate hikes throughout the year. Although many countries experienced higher-than-normal inflation last year, Singapore has held steady with a core inflation rate of 4.1% for 2022.
High Rental Yields
Singapore has a high demand for rental properties, so investors can expect to earn high rental yields. This is especially true for properties near transportation hubs and popular areas.
Steady demand, low construction site availability, and growing urban populations have meant that like most other cities around the world, rental prices have gone up for much of 2022. Compared to other populous cities, private residential prices are predicted to increase between 1% and 5% in 2023, lower than the expected 9% for the full-year 2022.
Government Incentives
The Singapore government provides various incentives to encourage property investment. For example, the government offers property tax rebates for owner-occupied homes. There are also various schemes to help first-time home buyers with the down payment and monthly mortgage payments.
A Deloitte 2020 report listed some of the most attractive investment incentives offered by the Singaporean government. Among these, it’s clear that the local government is working to integrate itself more effectively with the globalized economy, providing businesses with a multitude of investment opportunities in the country.
On the back of this, there is also a lot of focus on Research and Development (R&D), investment allowance, global trade programs, and enterprise development grants.
The growing need for foreign investing in Singapore property and in the country’s most crucial and fastest-growing sectors, banking, finance, international trade, real estate, and telecommunications, has allowed multinational companies to take better advantage of these opportunities.
While bigger investments by more powerful players and corporate powerhouses help to fuel the local economy, foreign investment from individuals has also been largely welcomed over recent years, with the government now providing several important grants and incentives for direct foreign investment.
Robust Legal Framework
Singapore has a solid legal framework that protects the rights of property buyers and sellers. This means that investors can have peace of mind knowing that their investments are protected.
For western investors that originate from the United Kingdom and Europe, you will be glad to know that Singapore follows a common legal and judicial system similar to that in England and other parts of central and western Europe. Based on common English law, which is often referred to as the Westminster Model, the system has evolved over time, incorporating traditional standards and more domestic needs at the same time.
Growing Population
Singapore's population is growing, so there will be a continued demand for housing. This is especially true as more people are moving to Singapore for work and study.
In recent years the government has initiated several projects and schemes to welcome foreigners to work, live and reside in the country. As part of its economic stimulus efforts, the country presents itself with a wealth of investment opportunities, not only for citizens and expats but also individuals that live outside of its borders.
Diversification
Singapore property can be an excellent way to diversify an investment portfolio. By investing in property, investors can spread their risk across different asset classes, which can help to reduce overall portfolio risk. If you are looking to invest your savings in a property in Singapore for rental income or own residences.
Buying any property type, and renting it requires potential investors to consider some influencing factors. According to Jae Hei, real estate sales advisor at Tembusu Grand, they suggest that buyers should consider the follow factors when looking for an investment property:
- A good location nearby train stations and expressways
- Nearby schools and education facilities
- High-end amenities and facilities.
- Walking distance to shops and restaurants.
- Easily accessible to sports and fitness facilities
Singapore offers investors from far and wide an opportunity to invest in a country with a stable, diverse and growing economy. Against the backdrop of wider global economic uncertainty, Singapore presents itself with a wealth of investment opportunities, for both businesses and individuals.
In the same breath, expats might also find themselves in the midst of a bubbly investment market that offers them the freedom to directly research and seek professional advice before making any investment decisions.
In the coming years, Singapore will present itself on the world stage as a powerhouse and global influence in the investment arena, and by the looks at how it’s currently going, the country is rapidly approaching the pinnacle of international prestige.
