Singapore Real Estate

Singapore real estate is highly cyclical. Historically, cycles average 11 years from peak to peak. After significant price increases through 2006 and 2007, the current economic environment has dampened the Singapore real estate market. With first-hand experience of the Singapore real estate market, Asia Property Consultants are ideally placed to offer honest, practical and potentially cost-saving advice to international property investors. The following will help you determine whether Singapore real estate is the optimum investment strategy to fulfill your objectives:

1.

Although Singapore real estate prices have been booming since 2006, the local economy faces the triple threat of:

i) weak exports - Non-oil domestic exports fell by 24% in Feb 09, following an 35% decline in Jan 2009.

ii) reduced levels of economic growth - GDP contraction in the second half of 2008 meant the overall GDP growth rate for Singapore during 2008 was 1.2%

iii) inflation - the housing component of inflation grew 12.7% year-on-year.

As one of the most attractive cities to live in Asia, Singapore real estate investment is popular among global investors. Mercer Human Resource Consulting rates Singapore as the world's 26th most livable country in its 2009 Quality of Living Survey (6 positions higher than in 2008). To support real estate investment, Asia Property Consultants offers relocation services including tours of local services, Singapore schools, supermarkets, transport etc.

International entrepreneurs and property investors buy Singapore real estate for the following reasons:

i) As residential real estate for entrepreneurs living in or relocating to Singapore;

ii) As commercial real estate to support your business activities in Singapore; and

iii) For property investment to enhance global assets.

Foreigners are permitted to purchase Singapore real estate, and thereafter benefit from selling Singapore real estate. Foreigners and permanent residents (PRs) accounted for almost one quarter of all residential sales in Singapore real estate in 2007. However, foreign investors wishing to purchase Singapore real estate with land are required to obtain approval from the Singapore Land Authority (SLA). These ownership laws are governed by the Residential Property Act and have been in place since 1973.

Weakening sentiment in the luxury residential sector of the Singapore real estate market is highlighted by Kuwait Finance House's decision to withdraw its acquisition of Phase One of Goodwood Residence in Bukit Timah for S$818.4 million. On the other hand, Merrill Lynch upgraded its investment rating for two large Singapore property developers, CapitaLand and City Developments, in May 2008.

5.

Singapore real estate investors pay an annual property tax based on rental income. Singapore property tax is payable by the owner regardless of where in the world they live and regardless of nationality.

Asia Property Consultants independently assists international property investors effectively and efficiently manage all aspects relating to the purchase and sale of Singapore real estate. Our Firm draws upon the latest residential and commercial real estate market information, enabling us to offer honest, reliable opinions on i) Singapore real estate cycles ii) the current and future outlook for Singapore real estate and iii) expected interest rate and currency movements and their impacts on Singapore real estate. In addition to our own experiences, our sources include statistics and forecasts from reliable, reputable sources including the Singapore Economic Development Board, the Urban Redevelopment Authority, the Land Transport Authority and the Monetary Authority of Singapore.

Under the Singapore Economic Development Board's (EDB) Global Investor Programme (GIP), foreigners buying Singapore real estate obtain Permanent Residence (PR) if they invest a minimum of S$2 million (US$1.3 million).

Asia Property Consultants will appoint and supervise a local lawyer to assist with the purchase or sale of Singapore real estate. Furthermore, we advise on the strength of local laws to protect asset ownership (including Singapore real estate) by foreign investors.

Because of the global credit crunch, it is increasingly difficult to obtain finance to support Singapore real estate investment. Asia Property Consultants assist clients obtain property finance of up to 80% of the valuation or purchase price of the Singapore property, whichever is lower, according to Monetary Authority of Singapore (MAS) guidelines. Interest rates from Singapore banks are available as low as 2.8%. Asia Property Consultants works with leading international banks in Singapore to obtain housing loans for clients, including ANZ Bank, DBS Bank and OCBC Bank.

Our firm will organise property valuations for a prospective Singapore real estate purchase, including arranging inspections, surveys and valuations.

The completion of major projects such as the Integrated Resorts and Marina Bay Financial Centre are expected to have a positive effect on business in Singapore and on the confidence of investors.

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