Chinese prefer Singapore over Hong Kong property

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The interest of Chinese property buyers in real estate in Singapore has hit record levels this year as instability in Hong Kong appears to be rising, according to Shanghai-based property portal Juwai.com.

“Given the situation in Hong Kong, Singapore has a temporary advantage over its major regional competitor for mainland property investment, and the money is flowing. Singapore is the regional safe harbour and the current unsettled political and economic environment makes safety seem worth paying a premium for,” said Juwai.com CEO Georg Chmiel.

The online marketplace said the boost in Singapore was from “mainland Chinese money that might otherwise have been channeled to Hong Kong, or Hong Kong money looking for offshore diversification”.

Capital restrictions

Hannah Jeong of property management firm Colliers said Singapore was probably a temporary alternative to Hong Kong, largely because of cultural and linguistic ties between the city-state and mainland China.

“Despite the capital outflow restrictions from China, a mutual fund or family trust format will be able to bring out capital continuously from China,” she said.

Investment from China has been blamed for driving up Hong Kong rents and is partly blamed for the social disturbances.

Singapore, which is about half the size of Hong Kong, has often been compared to the latter, as both financial hubs attract international talent. But one major difference between the two global Asian cities is home ownership.

According to Singapore’s Department of Statistics, Singapore’s home ownership rate was 91 per cent in 2018. In comparison, Hong Kong’s home ownership rate was 49.2 per cent in 2018 according to Hong Kong’s Census and Statistics Department.

Despite higher taxes in the city-state

And money keeps flowing in even though Singapore has enforced strict housing policies and measures to block foreign investment and the super-rich pushing up prices. For example, the city-state requires foreign buyers to pay a whopping 20 per cent on any residential property purchase.

Chmiel said that most wealthy mainland Chinese are looking to safely diversify their wealth and guard a portion of it in offshore assets, which are perceived to be less vulnerable to economic cycles in China, even given that property transfer taxes are significantly higher in Singapore than in Hong Kong.

He added that more apartments have sold for about $7.3 million or more in Singapore this year than in any full year since 2008 and he expects “this trend to maintain itself into the first half of 2020 at least.”



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The interest of Chinese property buyers in real estate in Singapore has hit record levels this year as instability in Hong Kong appears to be rising, according to Shanghai-based property portal Juwai.com. “Given the situation in Hong Kong, Singapore has a temporary advantage over its major regional competitor for mainland property investment, and the money is flowing. Singapore is the regional safe harbour and the current unsettled political and economic environment makes safety seem worth paying a premium for,” said Juwai.com CEO Georg Chmiel. The online marketplace said the boost in Singapore was from “mainland Chinese money that might otherwise...

Auto Draft

The interest of Chinese property buyers in real estate in Singapore has hit record levels this year as instability in Hong Kong appears to be rising, according to Shanghai-based property portal Juwai.com.

“Given the situation in Hong Kong, Singapore has a temporary advantage over its major regional competitor for mainland property investment, and the money is flowing. Singapore is the regional safe harbour and the current unsettled political and economic environment makes safety seem worth paying a premium for,” said Juwai.com CEO Georg Chmiel.

The online marketplace said the boost in Singapore was from “mainland Chinese money that might otherwise have been channeled to Hong Kong, or Hong Kong money looking for offshore diversification”.

Capital restrictions

Hannah Jeong of property management firm Colliers said Singapore was probably a temporary alternative to Hong Kong, largely because of cultural and linguistic ties between the city-state and mainland China.

“Despite the capital outflow restrictions from China, a mutual fund or family trust format will be able to bring out capital continuously from China,” she said.

Investment from China has been blamed for driving up Hong Kong rents and is partly blamed for the social disturbances.

Singapore, which is about half the size of Hong Kong, has often been compared to the latter, as both financial hubs attract international talent. But one major difference between the two global Asian cities is home ownership.

According to Singapore’s Department of Statistics, Singapore’s home ownership rate was 91 per cent in 2018. In comparison, Hong Kong’s home ownership rate was 49.2 per cent in 2018 according to Hong Kong’s Census and Statistics Department.

Despite higher taxes in the city-state

And money keeps flowing in even though Singapore has enforced strict housing policies and measures to block foreign investment and the super-rich pushing up prices. For example, the city-state requires foreign buyers to pay a whopping 20 per cent on any residential property purchase.

Chmiel said that most wealthy mainland Chinese are looking to safely diversify their wealth and guard a portion of it in offshore assets, which are perceived to be less vulnerable to economic cycles in China, even given that property transfer taxes are significantly higher in Singapore than in Hong Kong.

He added that more apartments have sold for about $7.3 million or more in Singapore this year than in any full year since 2008 and he expects “this trend to maintain itself into the first half of 2020 at least.”



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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