How top retail estate Singapore is attracting international investment

Singapore's property market has been a magnet for foreign investors over the last decade, with prominent names like inventor James Dyson and actors Jet Li and Jackie Chan making significant investments. In a recent report, Singapore was crowned as the top real estate investment prospect in Asia-Pacific. The city-state, despite being smaller than Hong Kong, has been able to attract a multitude of investors due to several key factors. Singapore has long been recognized as one of Asia's major financial hubs, ranking fourth in the Global Financial Centers Index in 2019, just behind New York, London, and Hong Kong. Its reputation for having the world's best business environment for nearly a decade, coupled with a competitive workforce, low corruption levels, and advanced infrastructure, makes it an appealing destination for investors. A surge in demand for office space across Asia-Pacific in 2019, with a predicted 2.4% increase, is expected to be outperformed by Singapore, underlining its attractiveness as an investment hub. The availability of office spaces in Singapore has reached an all-time low, with companies like Dyson, Microsoft, and Unilever setting up their headquarters in the city. The stable political climate in Singapore is also a contributing factor to its desirability among investors. The city-state's ascension to the top spot follows a decline in rankings for Hong Kong, which dropped 12 spots in 2019 and is projected to slip further to the 22nd position in 2020. This shift in dynamics has seen capital flow from Hong Kong to Singapore, attributed to the political uncertainties faced by Hong Kong. Despite the market uncertainties stemming from trade tensions, investors are not just focusing on retail and office spaces, but also showing interest in the residential sector. The residential property market in Singapore continues to attract international investors, notwithstanding the government's move in 2018 to increase stamp duty rates for foreign buyers and implement other cooling measures. The absence of inheritance tax in Singapore is a key incentive for foreigners to invest in property assets with the aim of passing them on to future generations. The allure of opulent houses in Singapore remains strong, with notable figures like James Dyson making record-setting purchases. Despite being the world's second-most expensive city to buy a home, with an average property price exceeding 870,000, investors are undeterred by the high costs. The luxury property market in Singapore has seen an influx of foreign buyers in recent months, indicating a strong interest in high-end assets. However, as Singapore gears up for its upcoming general election, property prices are expected to be a significant talking point that could shape domestic policies and affect investment prospects. The country's exposure to geopolitical and trade tensions adds an element of uncertainty to its real estate market, leaving the outlook for investment prospects in 2020 hanging in the balance.