Why Singaporean investors consider residential property as the safest asset class

One in six ultra-high-net-worth individuals in SG plan to buy a property in 2023.

Gold is usually deemed as the safest asset class, but for Singapore’s wealthiest, it’s residential properties.

Data from Knight Frank’s “The Wealth Report” showed that one in six Singaporean Ultra-high-net-worth individuals (UHNWIs) plan to buy a property in 2023. 

One in four UHNWIs also own a residential property outside of Singapore.

According to Knight Frank, Singapore is also an attractive location for UHNWIs looking to purchase a home, ranking 1st in Asia and 4th globally.

Singapore’s luxury residential market, in particular, continues to be appealing to Asia’s wealthiest despite being one of the world’s most expensive.

“[Singapore] remains the top Asian territory of choice when purchasing a new home. Reasons behind this include the city’s political stability, excellent infrastructure, and favourable tax environment,” Knight Frank reported.

Investors from China, India, Malaysia, and Hong Kong selected Singapore as the most likely destination when considering investment homes abroad.

Knight Frank also underscored that Singapore remains one of the highest markets for super and ultra-prime properties.

In Singapore, US$1m will buy an investor 34 square metres of prime property.

“Singapore still ranks among the top global cities where UHNWIs are looking for homes despite prime prices lagging. This year, we might expect a gour% increase in prime prices in Singapore, amidst an upward pressure on property prices fueled by a rising number of wealthy individuals,” Leonard Tay, head of research at Knight Frank Singapore, said.