Prime residential properties in Singapore are value buys as compared to other global cities.
Luxury residence prices may have fallen by 20 per cent in the last four years, but at current levels they are most affordable as compared to Hong Kong, New York and London. The average price point of luxury residences was S$1,991 per square foot (psf) in Q4 2015, as per a report from Jones Lang LaSalle (JLL).
This could be attributed to the effectiveness of Singapore’s cooling measures which have successfully controlled property prices, while prices have continued inching upwards in other global cities.
As compared to Singapore, New York and London’s luxury homes were 80 to 90 per cent higher in 2015 – registering a 20 to 25 per cent increase in price over the last five years. Meanwhile, property prices in Hong Kong have continued to rise at a higher pace and are now an astounding 165 per cent higher compared to Singapore.
Despite the additional tax burdens, “the cost of property ownership in Singapore of 19 per cent is comparable to that of other global cities,” JLL’s national director Regina Lim told The Business Times.
By 2015, the average home price to income ratio in Singapore was just 5.6 times, providing home owners with greater purchasing power.
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