Singapore has ranked top in the list in terms of real estate investment prospects. The rankings are based on an Urban Land Institute and PwC report on property trends in the region.
Singapore tops the list in terms of real estate investment prospects
In terms of price increases in 2020, Singapore tops the list this time round, with Hong Kong slipping to the bottom from 14th place this year. The recent political instability is likely to be the main cause for the change, with investors avoiding China and Hong Kong for the moment due to the uncertainty with regards to the future of property investment.
Analysts have however said that Hong Kong is a very resilient market considering its high property prices and prices are likely to rebound once the protests end.
In turn, Singapore has benefited as investors turn their attention to this region. Following Singapore is Tokyo in second place, Ho Chi Minh City in third, with Sydney and Melbourne taking the fourth and fifth spots.
Other cities in the top 15 include Beijing, Shenzhen, Shanghai, Guangzhou, Seoul, Bangkok, Taipei, Mumbai and New Delhi.
Rebound in Singapore’s residential property prices shows market resilience
Singapore was one of the few markets in the region with an increase in property transactions in the first half of this year. The residential property sector in Singapore has shown its resilience as apartment prices rebound over the past few quarters. The office sector has also absorbed the oversupply.
Most of the investments in the first half of 2019 were from cross-border capital with deals totalling US$4.9 billion (S$6.7) billion. This significant year-on-year increase of 73% bodes well for Singapore. In Australia, the number of deals also rose 3% to almost US$12 billion. Vietnam looks to be a bright spot, with foreign developers putting in money in the luxury property market. There are however concerns about sustainability as land prices soared and supply may soon outweigh demand.