Are Buyers Actually Having fun with Capital Appreciation and Rental Returns?
In keeping with the most recent HSBC World Entrepreneurial Wealth Report 2025, Singapore, the UK and Switzerland rank as the highest locations for the world’s super-rich to ship their cash.
Singapore leads the pack, cementing its fame as a worldwide hub for entrepreneurial wealth and relocation. The examine surveyed 3,000 entrepreneurs throughout 15 markets, and the city-state emerged because the standout alternative for wealth preservation and development.
The UK: Rising Rents, Shrinking Provide
However what in regards to the UK market? Are landlords benefitting from these cash flows?
The Royal Establishment of Chartered Surveyors (RICS) reported that new rental listings plunged to minus 37 in August — the bottom since April 2020, when Covid froze the economic system. With demand far outstripping provide, rents are forecast to rise one other three p.c over the following yr.
The numbers are stark: official information exhibits rents have jumped 30 p.c in simply 4 years. In London, tenants now pay a mean of GBP 2,250 (SGD 3,904) monthly, piling on extra cost-of-living strain. What’s behind this? A landlord exodus. Authorities laws tilted in direction of renters has pushed many house owners to promote, additional lowering rental inventory and driving costs larger.
Briefly, tenants lose, however the remaining landlords are having fun with fatter returns.
Might the Identical Occur in Singapore?
Singapore is completely different, however parallels exist. The world’s steepest property tax on international patrons — a 60% Further Purchaser’s Stamp Responsibility (ABSD) — has successfully excluded foreigners from the residential market. That leaves residents and everlasting residents as the first gamers.
This exclusion retains costs in test relative to different wealth hubs similar to Hong Kong, London, Monaco, and Zurich. Nevertheless it additionally limits rental provide. Fewer traders imply fewer rental items — and that helps drive rents larger for locals who personal property.
Certainly, Singapore’s rental costs have been climbing steadily. And whereas one might argue that decrease obstacles for international patrons might need fueled even larger property values and rents, for now, the beneficiaries are clearly the native landlords.
World Property Dynamics
The newest Savills World Cities Prime Residential Index confirms the shifting panorama.
- Tokyo surged with 8.8 p.c development in H1 2025, powered by a persistent scarcity of latest provide and powerful demand. Forecasts name for one more 6 p.c –7.9 p.c rise within the second half of the yr.
- Berlin, Dubai, and Seoul every posted development above 5 p.c, supported by tight provide pipelines and resilient sentiment.
- Life-style cities similar to Amsterdam, Cape City, Lisbon, and Sydney additionally gained, buoyed by their enduring attraction to international patrons.
- Hong Kong struggled, with a 3.5 p.c drop in H1 2025 amid coverage uncertainty and already sky-high pricing. Nonetheless, it stays the world’s costliest market, averaging US$3,720 per sq. foot.
Singapore: Protected Haven Foreign money, Distinctive Market
The forex story issues too. Julius Baer notes that the Singapore greenback, together with the Swiss franc, is the one main forex to persistently ship constructive returns towards the US greenback over 10, 20, and 30 years. Since 2000, the SGD has risen 29.3 p.c versus the USD — the strongest in Asia.
This makes Singapore each a property and forex haven. However the residential market right here is in contrast to every other. The ABSD creates a fortress, protecting worldwide speculative capital out and leaving long-term worth creation to locals and PRs.
The place Ought to Buyers Look?
With capital values projected to rise simply 1.5 p.c in H2 2025, the actual alternatives lie within the secondary market, the place older prime condos supply:
- Bigger layouts
- Decrease density
- Scarcer places
For eligible patrons — Singaporeans, PRs, and exempt nationalities similar to People and Swiss — these properties characterize robust worth and upside, particularly given the en bloc potential in prime places.
Take Orchard Street: round Cairnhill, uncommon gems like The Edge on Cairnhill by starchitect Moshe Safdie (of Marina Bay Sands and Jewel Changi fame) commerce beneath SGD 2,700 psf. That’s much more engaging than smaller, much less central new launches.
Or Tanglin: St. Regis Residences — 999-year leasehold, with elegant grounds and concierge companies — might be discovered at simply SGD 2,800 psf. That’s a cut price in comparison with many more moderen however much less distinguished tasks. Close by, The Tomlinsontrades even decrease, although with out the identical model cachet.
Remaining Take
In a world of forex volatility, provide squeezes, and shifting coverage, Singapore stands out. With restricted land, robust home demand, and a rock-solid forex, property right here continues to function probably the greatest long-term worth preservation property. For these eligible to purchase, the secondary market in prime districts stays the neatest play — combining heritage, house, and long-term appreciation.
This opinion piece was written by luxurious professional Alex Shlaen
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