Opinion: World Property, Currencies and Singapore Insights

Are Traders Actually Having fun with Capital Appreciation and Rental Returns?

In accordance with the most recent HSBC World Entrepreneurial Wealth Report 2025, Singapore, the UK and Switzerland rank as the highest locations for the world’s super-rich to ship their cash.

Singapore leads the pack, cementing its popularity as a world hub for entrepreneurial wealth and relocation. The examine surveyed 3,000 entrepreneurs throughout 15 markets, and the city-state emerged because the standout alternative for wealth preservation and progress.

The UK: Rising Rents, Shrinking Provide

However what concerning the UK market? Are landlords benefitting from these cash flows?

The Royal Establishment of Chartered Surveyors (RICS) reported that new rental listings plunged to minus 37 in August — the bottom since April 2020, when Covid froze the economic system. With demand far outstripping provide, rents are forecast to rise one other three % over the subsequent 12 months.

The numbers are stark: official information reveals rents have jumped 30 % in simply 4 years. In London, tenants now pay a median of GBP 2,250 (SGD 3,904) per thirty days, piling on extra cost-of-living stress. What’s behind this? A landlord exodus. Authorities laws tilted in direction of renters has pushed many homeowners to promote, additional lowering rental inventory and driving costs greater.

In brief, tenants lose, however the remaining landlords are having fun with fatter returns.

May the Identical Occur in Singapore?

Singapore is completely different, however parallels exist. The world’s steepest property tax on overseas consumers — a 60% Further Purchaser’s Stamp Obligation (ABSD) — has successfully excluded foreigners from the residential market. That leaves residents and everlasting residents as the first gamers.

This exclusion retains costs in verify relative to different wealth hubs similar to Hong Kong, London, Monaco, and Zurich. But it surely additionally limits rental provide. Fewer buyers imply fewer rental items — and that helps drive rents greater for locals who personal property.

Certainly, Singapore’s rental costs have been climbing steadily. And whereas one may argue that decrease limitations for overseas consumers might need fueled even greater property values and rents, for now, the beneficiaries are clearly the native landlords.

World Property Dynamics

The newest Savills World Cities Prime Residential Index confirms the shifting panorama.

• Tokyo surged with 8.8 % progress in H1 2025, powered by a power scarcity of latest provide and robust demand. Forecasts name for one more 6 % –7.9 % rise within the second half of the 12 months.
• Berlin, Dubai, and Seoul every posted progress above 5 %, supported by tight provide pipelines and resilient sentiment.
• Way of life cities similar to Amsterdam, Cape City, Lisbon, and Sydney additionally gained, buoyed by their enduring attraction to international consumers.
• Hong Kong struggled, with a 3.5 % drop in H1 2025 amid coverage uncertainty and already sky-high pricing. Nonetheless, it stays the world’s costliest market, averaging US$3,720 per sq. foot.

Singapore: Secure Haven Foreign money, Distinctive Market

The foreign money story issues too. Julius Baer notes that the Singapore greenback, together with the Swiss franc, is the one main foreign money to constantly ship optimistic returns towards the US greenback over 10, 20, and 30 years. Since 2000, the SGD has risen 29.3 % versus the USD — the strongest in Asia.

This makes Singapore each a property and foreign money haven. However the residential market right here is in contrast to every other. The ABSD creates a fortress, protecting worldwide speculative capital out and leaving long-term worth creation to locals and PRs.

The place Ought to Traders Look?

With capital values projected to rise simply 1.5 % in H2 2025, the actual alternatives lie within the secondary market, the place older prime condos supply:

• Bigger layouts
• Decrease density
• Scarcer areas

For eligible consumers — Singaporeans, PRs, and exempt nationalities similar to Individuals and Swiss — these properties characterize sturdy worth and upside, particularly given the en bloc potential in prime areas.

Take Orchard Highway: round Cairnhill, uncommon gems like The Edge on Cairnhill by starchitect Moshe Safdie (of Marina Bay Sands and Jewel Changi fame) commerce under SGD 2,700 psf. That’s way more engaging than smaller, much less central new launches.

Or Tangler: St. Regis Residences — 999-year leasehold, with elegant grounds and concierge companies — will be discovered at simply SGD 2,800 psf. That’s a cut price in comparison with many more recent however much less distinguished initiatives. Close by, The Tomlinsontrades even decrease, although with out the identical model cachet.

Remaining Take

In a world of foreign money volatility, provide squeezes, and shifting coverage, Singapore stands out. With restricted land, sturdy home demand, and a rock-solid foreign money, property right here continues to function among the best long-term worth preservation belongings. For these eligible to purchase, the secondary market in prime districts stays the neatest play — combining heritage, area, and long-term appreciation.

This opinion piece was written by luxurious professional Alex Shlaen

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