Every month, Ohmyhome co-founders Race and Rhonda Wong share their insights on the real estate market, PropTech, and one-stop-shop Ohmyhome.
This May, Rhonda examines the growing value of living in Singapore and its effect on the real estate market, offering three main factors on why Singapore properties will continue to be in high demand. She explores the importance of a reliable healthcare system amid a deathly pandemic, Singapore’s rising position as the leading tech hub in the Asia Pacific region, and the resulting influx of well-heeled buyers who are growing their investment portfolios through real estate.
The Singapore real estate market is remaining resilient amid the ongoing pandemic, powered by strong capital inflows from some of the wealthiest families in the Asia Pacific region. They are investing in prime residential properties here like Good Class Bungalows (GCB), pushing up its prices to unprecedented levels as more of them recognise the value of living in Singapore and convert to Singapore passports.
Why is that so? Well, it’s quite simple.
Compared to others, the Singapore government’s effective Covid-19 response and their support for the healthcare sector pushed the nation as a top destination location for relocation, education, and even retirement. Due in part to Singapore’s history in battling infectious diseases in the past, they were able to swiftly and pragmatically battle the virus, earning the public’s respect and trust in the process.
They enforced systematic screening across industries to root out Covid-19 clusters and mobilised Social Distancing Ambassadors to regularly patrol public spaces and ensure everyone is following social distancing rules. Not to mention, vaccinations are free for Singapore citizens and long-term residents, easing the financial burden carried by almost everyone else around the world.
This is the exact reason, according to a study done by the Institute of Policy Studies (IPS), that helped Singapore residents adapt to the new normal.
In fact, Singapore topped Bloomberg’s Covid Resilience Ranking, dethroning New Zealand in the process, proving that it is currently the number one country that’s handling the pandemic most effectively. From their statistics, Singapore is among those with the lowest fatality rates and number of cases per month.
As such, the city-state remains to be one of the safest countries in the world. This has elevated the value of a Singapore passport as other choices previously preferred, countries like America, Europe, Australia, Malaysia, or Thailand, come nowhere close to Singapore’s Covid-19 response, nor their healthcare systems. (Singaporeans can enjoy universal healthcare and subsidised public health insurance.)
But more than that, Singapore is now also rising as the leading tech hub in the region.
More than 80% of the world’s top tech giants already have an active presence in Singapore, but even bigger players like China’s Tencent and Bytedance have also announced their plans to set up regional offices here.
With China tech firms joining the fold, high-income professionals will be even more incentivised to move to Singapore in pursuit of career and wealth growth. We foresee this to be a key factor for an increase in property rental demand and property prices.
Even the Singapore economy is set to bounce back this year. The Monetary Authority of Singapore (MAS) said the country’s gross domestic product (GDP) could grow more than 6% this year, though it may remain uneven across sectors.
The Asia Pacific, as a whole, is projected to drive economic growth over the next decade. Matthew Bouw, CEO of Asia Pacific for Cushman & Wakefield, said that it will outgrow the rest of the world at 3.5% per annum. The region’s economy accounted for 36% of the global total at the end of 2019 and is expected to represent more than 40% of the global total by the end of the decade.
As a PropTech company uniquely equipped with a highly experienced real estate agent salesforce and advanced technology, Ohmyhome is at the best spot to assist well-heeled buyers in securing the most beautiful and profitable homes in the country.