Tag Archives: Japan

S’pore ranked outside top 5 for real estate prospects

Japan and Australia remain the favourite countries for real estate development and investment, according to the Emerging Trends in Real Estate Asia Pacific 2016 forecast jointly published by the Urban Land Institute (ULI) and PwC.

Tokyo, Sydney, Melbourne and Osaka took four of the top five spots for promising markets in the Asia Pacific. Ho Chi Minh City was rated fifth.

The study, which surveyed 343 real estate professionals, ranked Singapore eleventh for investment prospects and ninth for development out of 22 regional markets.

Specifically, it pointed to a slow residential market here, mainly due to government actions in 2013 to stem soaring home prices.

“Given the current sentiments of Singapore’s property market, we’re seeing local players becoming more involved at a regional and global level as they explore, increase and diversify investments into other major markets such as Japan and Australia,” said Yeow Chee Keong, Real Estate & Hospitality Leader, PwC Singapore.

He added: “The residential market will continue to hope for an increase in the level of transactions, and that will be dependent on whether there will be modifications made to the cooling measures.”

Despite the tepid enthusiasm, the Emerging Trends report noted that “Singapore is always a market where institutions are looking to buy,” adding that a number of major property purchases are expected to be completed before the end of 2015.

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Singapore now has more rich individuals than Hong Kong

Singapore has overtaken Hong Kong in terms of its population of high net worth individuals for the first time since 2009, according to the Capgemini-Royal Bank of Canada World Wealth Report.

High net worth individuals are defined as those with more than US$1 million worth of investable assets.

According to the Capgemini-Royal Bank of Canada World Wealth Report, Singapore has 91,200 high net worth individuals in 2011, compared to 83,600 for Hong Kong.

However, both regions saw a dip in their wealthy populations. Singapore saw an 8 per cent drop while Hong Kong had a whopping 17 per cent fall in their numbers of high net worth individuals.

The Royal Bank of Canada (RBC) says this is in part due to the market volatility last year, which wiped out billions from the stock markets.

Despite this, the Asia Pacific remains the region with the most high net worth individuals, overtaking North America for the first time. Asia Pacific had surpassed Europe back in 2010.

China remains the country with the most high net worth individuals in Asia Pacific, with a population of 562,000 such individuals.

The top five countries by population of high net worth individuals are the US (3.07 million), Japan (1.82 million), Germany (951,000), China and the UK (441,000).

RBC says the high concentration of high net worth individuals is the reason why the region holds much allure for wealth managers, who will also have to contend with competition from domestic banks.

That is why RBC, the sixth largest wealth manager in the world, says it is only going after those with more than US$5 million in investable assets.

Barend Janssens, head of emerging markets at RBC Wealth Management, said: “The wealth bands which are below US$5 million are moving into what is the preferred or priority services of banks which have a sizeable consumer network.

“It’s concentrated on the high end of consumer services, instead of the low end of wealth management.”

Source : CNA – 2012 Jun 21