Are you thinking about investing in the property market in Singapore but looking for some more information before you take a step in the right direction? If so, this article will introduce you to some of the multitudes of reasons why buying property in Singapore is a shrewd investment and offers you an excellent return in the long run. What’s more, you might even be thinking about relocating to Singapore in the near future, and we’ll give you an insight into why it’s something that you almost certainly won’t regret. Let’s dive in and take a look at why you should consider investing in property in Singapore.
Your safety is assured.
When it comes to making an investment that will affect your future, safety is the primary factor you need to consider. The last thing you want to do is place trust in an unstable economy that could collapse at any time due to civil unrest or political instability. When it comes to safety, few places can match Singapore. In fact, Singapore ranks as the best place in Asia for quality of living, as well as the best place for expats to live in the whole of the continent. Most importantly, according to the Safe City Index, Singapore is the second safest city in the world, behind only Tokyo. Overall, it’s clear to see why so many people choose Singapore as a place to call home.
The economy is robust.
In spite of a small domestic market, Singapore’s economy is one of the most stable in the world and has no foreign debt and a positive surplus. Singapore’s ability to weather the economic crises faced in 1997 and 2008, as well as the recent COVID-19 outbreak indicates the country’s resilience, and much of the nation’s revenue comes from financial services, tourism, and manufacturing, the latter of which drives approximately 25% of the country’s annual GDP. To potential investors, Singapore’s strong economy is the foundation upon which capital gains can be made and is a strong pull for foreigners who are seeking to benefit from the nation’s stability. Things are expected to remain positive in the future, too, with Fortune ranking Singapore as the third wealthiest nation in the world, with clear evidence of future growth.
Leading global response to COVID-19.
Since the COVID-19 outbreak became a global pandemic, Singapore has been at the forefront of initiating ambitious programs to ensure the country can rebound from the affects of the disease as quickly as possible. The government has been credited with rolling out a range of COVID-19 responsiveness measures that are arguably the most rigorous in the world. At the center of it has been SG Clean, a comprehensive program that encourages companies to meet specific safety and hygiene standards by certifying compliant venues across the country. To anyone hoping to visit, or invest in Singapore in the near future, you are assured that the country is well on its way to recovery after COVID-19 arrived last year.
Personal taxes are low.
Personal income tax in Singapore is among the lowest in the world and follows a progressive scale that ends at just 22%. What’s more, there is no capital gains or inheritance tax, and if you relocate to the country, you only have to pay tax on the income that you earn in Singapore. As for property tax, rates on owner-occupied and non-owner-occupied residences are also applied on a progressive scale and are comparatively low, with the lowest contribution being 0% (for the first $8,000 and 4% for the next 47%), through to the highest band which is 16% (above $130,000).
Non-residential properties are taxed at 10% of the annual value. The relatively low tax payments, coupled with the ease at which the tax system can be understood, makes Singapore an excellent option for overseas investors.
Healthcare is world-class.
If you’re hoping to move to Singapore in the near future, the chances are that the quality and availability of healthcare for you and your family is going to be of paramount concern. The good news for expats is that Singapore ranks second in the world when it comes to the most efficient healthcare systems globally. Specifically, there are 28 primary healthcare facilities throughout the country, as well as 2,000 private general practitioners located within residential estates. Anyone that moves to Singapore doesn’t need to worry about healthcare, and you can be sure of excellent treatment and care wherever you are in the country.
Education is amongst the best in the world.
When it comes to education, you won’t be surprised to hear that Singapore ranks first in school quality at both the primary and secondary levels. The nation’s universities and other tertiary institutions consistently rank amongst the best in Asia. Many international schools follow the IB curriculum and provide a world-class education to learners that can be supplemented by home-tutors. As well as the high-performing international schools, expats in Singapore can also attend public and private schools across the country, as teaching is done primarily in English.
Although the first language in Singapore is English, children are also taught a second language (Chinese, Malay, Tamil, for instance), and even a third language beyond that if they’re competent in the first two. The multi-lingual nature of Singapore is a big draw for expats, as it encourages their children to develop their language skills from an early age.
As you can see, Singapore is an incredible place to live. In addition to the aspects that have already been outlined, the country has a diverse and bustling expat community, members of which have seamlessly integrated into local life and contribute to the peaceful way of life enjoyed by all citizens. But what about property specifically? Why is it a good idea to invest in property in Singapore? Let’s take a look now.
Your capital will appreciate over time.
Generally speaking, real estate appreciates over time. This is particularly the case if you buy property in a prosperous country and are smart with your initial negotiations. As cities grow and thrive, it’s natural for property prices to rise at the same time. According to Morgan Stanley, property prices in Singapore are expected to double by 2030. This is due to many of the factors that have already been mentioned here, as well as the increase in demand that will be driven by single buyers. Essentially, what this means is that if you’re in a position to invest in property in Singapore, there’s no better time than now to jump in and buy a property.
Mixed-use developments attract tenants.
Mixed-use developments are proving to be extremely popular with tenants in Singapore, particularly in the central business district. They offer residents easy access to stores, restaurants, gyms, and other leisure facilities without having to leave their residential developments, which drives down the overall cost of living and means they don’t have to waste a lot of time commuting, especially when working from home. What’s more, they have plentiful green spaces where children can play, and families can relax. It’s expected that mixed-use developments will continue to be popular with both locals and expats, and could be a shrewd investment when compared with solely residential neighbourhoods.
You can expect a healthy rental yield.
As Singapore continues to grow in the future, you can expect a healthy rental yield from your property if you decide not to live in it, that is. This growing garden city attracts people from all over the world thanks to its proximity to some of Asia’s financial giants, and the high-quality living enjoyed by residents is something that is extremely appealing to expats. One of the challenges that property owners sometimes face is the unpredictability of their return on investment. With Singapore’s burgeoning economy and the fact that it was ranked as the second easiest place in the world for doing business, you needn’t worry about your rental yield in the coming years.
Singapore is a city focused on the future.
When investing in property, you need to be confident that your investment will stand the test of time and will be good value in the future. Singapore is known as a green city oasis and has a keen focus on sustainability. In fact, 47% of land in the country is covered by green spaces, and 50,000 trees are planted in Singapore every year. The sprawling parks, bicycle and pedestrian lanes that weave throughout the city make commuting to work effortless for residence and contribute to the clean air enjoyed by people throughout the country. With global warming severely affecting many countries around the world in different ways, it’s great to know that Singapore is making a concerted effort to ensure their country is sustainable and is a safe and comfortable environment for its residents to live in.
What’s more as of mid-2020, Singapore had the second highest rate of internet penetration within the Southeast Asian region, standing at an impressive 88.4%, with connectivity possible throughout the country. This gives freelancers and independent investors peace of mind that, wherever they are in Singapore, they will have stable internet access and will be able to conduct their business online without any issues.
Conclusion.
Singapore is an extremely impressive country with lofty aspirations for the future. As well as being an incredibly safe and thriving place to live, it is undeniably appealing to potential investors. With property prices expected to double by 2030, there’s no reason to fear investing in property in the country in the coming years. When this fact is considered alongside Singapore’s thriving economy, stable government, and low tax system, it’s clear to see why the country is attracting so many foreign investors every year.
What’s more, the quality of life in Singapore is so high, as residents enjoy excellent education and healthcare, as well as clean and green living spaces dotted amongst the impressive modern architecture. If you’re looking to relocate to Asia, you should undoubtedly consider Singapore as one of your options. Overall, if you’re looking to invest in property in Singapore, now is a better time than ever to take the first steps towards getting on the property ladder in one of the world’s most thriving nations.
If investing in property in Singapore sounds like an opportunity you’d like to grasp, contact us directly at Twenty9.sg and we’d be delighted to answer any questions you might have about buying property in this fantastic country.
