During the recent Prime Global Cities Index, Knight Frank revealed that the value of the luxury homes in Singapore has hit its worst performance compared to the other 35 cities around the world that are also known for selling this type of residential property.
For the past 12 months until the month of June this year, the prices of these so-called luxury homes have declined by as much as 15.2 percent. In the same report, it said that this is the prices went down for the sixth consecutive quarter, causing apprehension among developers catering to these executive investors.
It is the Additional Buyer’s Stamp Duty (ABSD) in particular that had the biggest influence in the country’s high-end real estate market. Sans the cooling measures, the foreign investors used to be engrossed in buying homes in Singapore such as Adana @ Thomson and North Park Residences. However, many were highly displeased that they are now required to pay as much as 15% for the ABSD rate.
The president of Real Estate Developer’s Association of Singapore (REDAS) has already called out the attention of the government during their recent Lunar New Year celebration. He was appealing that the latter would consider about giving the prime residential market better options when it comes to the ABSD framework.
President Augustine Tan said that many dislike the said regulations and there is a significant decline in the prices of the luxury homes in Singapore today. With the cooling measures imposed, the government is actually discouraging the foreign clients to invest in the country rather than the other way around. Thus, it also prevents the country to have more investments, better jobs for the people as well as foiling economy growth.
Occupying the top spots are Sydney, Miami, and Vancouver. These cities have shown as much as 12.5 percent to 15 percent price growth every year. No doubt that their luxury home market has been flourishing compared to what Singapore is experiencing right now. If you are keen to read more on overseas properties, please click on The Peak @ Cambodia. Thank you.