- Singapore is a popular destination for high-net-worth individuals (HNWIs) seeking luxury rental properties.
- Singapore has seen a steady increase in visiting HNWIs due to its warm climate and high living standards.
- HNWIs are willing to pay top rental prices for family offices and prime bungalows in Singapore.
Singapore’s luxury rental market has seen a year-on-year growth of 39.3% due to HNWIs and wealthy families turning to the city-state for the high-quality living available there.
The appeal of Singapore’s luxury rental properties lies in its convenient location, safe living environment, world-class infrastructure and unique architecture, as well as its low tax rate and attractive lifestyle.
Demand from HNWIs has caused luxury rental prices to skyrocket, with individuals willing to pay large amounts for these residences.
HNWIs are also looking to Singapore for luxury landed properties that offer larger living spaces than condominiums and more strategic locations. The country is also well-served by corporate apartments, which cater to international business travellers for short and long-term stays.
The cost of leasing land has been rapidly increasing, with a 14.5% boost in the first three months of the year. It was preceded by a string of increments, resulting in a total annual rise of 39.3%.
Professor Qian Wenlan, director of the Institute of Real Estate and Urban Studies at the National University of Singapore (NUS), has linked the rapid growth in luxury home prices to an inadequate supply of such dwellings and an increased desire from wealthy buyers.
Professor Wenlan suggested that due to the limited land available, Singapore has few residential properties, and that the supply of landed houses for rent depends on demand from high-end tenants in the market.
Professor Sing Tien Foo of the Department of Real Estate at NUS noted that an increased demand for family offices over the past two years has driven prices upwards in the premium rental sector.
HNWIs looking to purchase or rent a luxury property in Singapore should make sure that they use safe money transfer methods.
HNWIs and foreign internationals who intend to rent or conduct business in Singapore should research the various modes of money transfer before travelling overseas to access secure and cost-effective services.
Factors such as proximity to transport links, business infrastructure, convenient amenities and access to target markets should be evaluated carefully when analysing the location of a business/rental space.
HNWIs looking to travel abroad can use our online money transfer comparison tool to compare foreign exchange rates.
