Singapore luxury property attract ultra-rich

Singapore luxury property attract ultra-rich

Despite the cooling measures introduced by the government, the luxury property market remains resilient as the wealthy still see the city as a safe haven, according to The Wealth Report 2012 by Knight Frank.

Done in collaboration with Citi Private Bank, the report surveyed 4,000 individuals who have an average net worth of US$100 million (S$125 million).

The respondents cited Singapore as the fifth most favoured location for a second home, after the US, UK, France and Spain. As far as quality of life is concerned, Singapore came in second after London.

The results reflect a growing shift in focus towards the East, where ‘centa-millionaires’ (with assets of at least US$100 million) (S$125 million) are growing fast. At the same time, Singapore is ranked the fifth most important global city after London, New York and Hong Kong, while Shanghai and Beijing took eighth and ninth spots respectively.

Looking at a 10-year period, respondents expect Singapore to stay in fifth place, but Beijing and Shanghai will likely climb to third and fourth spots respectively.

The report added that property is still the most favoured asset for high-net-worth individuals with a 31 percent portfolio share, while equities and bonds each have a 31 percent share. In the Asia Pacific, property holds a higher portfolio share at 31 percent, while equities and bonds take 24 percent and 16 percent respectively.

In addition, 57 percent of ultra-rich individuals are planning to boost their residential property portfolio.

Source: The Straits Times – 31 March 2012