Singapore Property | According to Bloomberg, Singapore will in no time start to reap good rewards as a result of increased stamp duty rate implemented by Hong Kong for property buyers in overseas.
“Hong Kong foreign investors are now expected to redirect their attention to Singapore marking an end to the three year slump in house prices in Singapore,” Cushman &Wakefield stated.
“In the long run this rise in stamp duty will prove to be advantageous for Singapore,” Managing Director Cushman & Wakefield for Asia pacific, Sigrid Zialcita said.
“Singapore has always been portrayed as a good investment destination as it offers people more so the investors to really get to preserve their capital. This is something that makes us hopeful and optimistic that foreign investors will throng back in huge numbers,” Sigrid added.
In terms of comparison, Singapore’s 18% stamp duty is much lower compared to Hong Kong’s 30 % making it very attractable and favorable for investors especially those from the mainland China who are seeking for investments in abroad to try and reduced the effect of the Yuan’s weakness in the local and international market.
Due to this, property development analysts have gone ahead based on these events to predict that Hong Kong secondary home prices will face a slump of 8% while Singapore’s property value will also face a dip of about 1.5% in 2017.
“We expect that prices will remain flat or dip only by a margin of 2%,” Desmond Sims CBRE’S Research head of Singapore and Southeast Asia said.
In contrast, Savills has predicted a 1% rise in average home prices.
Since the government rolled out it stringent property cooling measures in the property market 2013, the city-state has had to endure a fall in housing prices by a margin of 11% since 2013.
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