Singapore’s red-hot property prices might be due to record USD317 billions of inflows : Even as Singapore absorb record inflows of new money into its economy, the Monetary Authority of Singapore chief believes the city state is well-equipped to handle the surge, and hence reducing concerns of a real estate bubble even as rents and prices surge to unprecedented highs.
The Singapore housing market has seen huge increases in the property prices and rental prices. Landlords meanwhile are asking tenants for big rent increases, sometimes as much as double, when they extend leases.
The Asian financial hub attracted S$448 billion (US$317 billion) last year, 59 per cent higher than the previous year, the latest data from the Monetary Authority of Singapore show. The inflows, which are roughly three quarters of Singapore’s nominal gross domestic product, come on top of gains from higher asset prices last year, according to the central bank.
When a large sum of money comes into any country, one such concern is flows into the property market driving up prices. Rather than blocking money coming in, the regulator has imposed measures on the real estate sector to prevent overheating.
Singapore’s efforts to build an international wealth hub are paying off as the city enjoys a post-Covid resurgence, attracting investors drawn to its stability. Assets managed by local firms soared 16 per cent in 2021 to US$4 trillion, mostly from overseas, exceeding the global growth rate. Many investors from US hedge-fund titan Ray Dalio to Indian billionaire Mukesh Ambani are setting up wealth offices to manage their personal wealth.
The red-hot property prices might be due to record USD317 billions from the super rich
Money is coming from growing wealth across Asia, where the rich are seeking a place to invest. However, these wealth is also helping to boost the financial hub as it seeks to add as many as 20,000 finance jobs over five years, in areas including wealth management and sustainable financing.
Indeed, the super rich might have affected the prices in Singapore as they chased after yields.
This is good for the locals and foreigners in the city state too.
