Singapore real estate investment is a profitable asset for many international investors. However the adverse impact of the global financial market crisis and economic downturn means Singapore real estate investment remains vulnerable. The following information outlines factors for international investors to consider in regards to Singapore real estate investment:

Figures from the Urban Redevelopment Authority (URA), show prices of private residential, office, and retail properties decreased by 2.4%, 3.9% and 0.3% respectively in the 3rd Quarter 2008 while the prices of industrial properties increased slightly by 0.9% in the same period. The rental market also experienced a decline in average prices across the residential, and commercial sectors.

At the end of the 3rd Quarter 2008, there were 66,422 private residential units either already under construction or having been given planning approval but not yet under construction. Of these, 42,918 units were unsold and 37,051 were expected to be completed between 4th Quarter 2008 and 2011.

The Mercer 2009 Quality of Living Survey supports the strengths of Singapore real estate investment. In the survey, Singapore was ranked the 26th for its quality of living standards (up 6 positions from last year). As the leading market in the region for personal safety and it’s high quality of living standards, Singapore has key characteristics to attract investors.

The Singapore Economic Development Board's (EDB) Global Investor Programme (GIP), enables foreign individuals to obtain Permanent Residence (PR) status if they invest a minimum of S$2 million (US$1.3 million). Up to half of this amount can be a Singapore real estate investment.

Foreign buyers accounted for approximately 26% of property purchases after the second quarter of 2008. Despite a restriction on property that includes land, foreigners can be involved in Singapore real estate investment. For landed property such as bungalows, semi-detached and terrace houses, approval is required from the Singapore Land Authority (SLA).

Foreigners can borrow up to 80% of the value of the property when undertaking Singapore real estate investment. Asia Property Consultants source and negotiate competitive international mortgages to for clients. International banks such as ANZ Bank, OCBC Bank and DBS Bank are used for obtaining property finance.

Evidence in favour of Singapore real estate investment is shown in the 2008 International Property Rights Index. The Physical Property Rights index is made up of three factors i) property rights protection, ii) registering property and iii) ease of loan access. Singapore is ranked 8th out of 115 countries globally and 1st out of 18 countries in this region.

Asia Property Consultants will develop market analysis related to the property cycles, property trends, current market sentiment, interest rate and currency movements and their likely impact on Singapore real estate investment. The Singapore Economic Development Board (EDB), Urban Redevelopment Authority (URA), Land Transport Authority (LTA) and the Monetary Authority of Singapore (MAS) are used as reputable sources for reference.

An appealing aspect of Singapore real estate investment is that there is no capital gains tax. Asia Property Consultants has in-house tax specialist to manage the tax and accountancy requirements of our clients.

Comprehensive property management services are of immense benefit to clients involved in Singapore real estate investment. Asia Property Consultants efficiently project manages requirements including property maintenance and refurbishments, arranging appropriate property insurance, finding tenants, arranging effective property security and ad hoc problem solving.

Asia Property Consultants assists clients with all facets of Singapore real estate investment across the residential and commercial sectors. From providing appropriate investment options to the property purchasing process, to overseeing the process of selling Singapore property, investors save time and money by using our firm.

For more information on Singapore real estate investment, call our Singapore office at (+65) 67350120 or contact email@healyconsultants.com