Why Singapore Property is so Attractive to Affluent Chinese Investors?
A Chinese national recently purchased 20 units at Canning Hill Piers in a bulk deal valued at over $85,000,000. The condo has sold 92% of its units since its launch in November last year.
Recent years have seen a significant upsurge in Chinese investors seeking to buy properties in Singapore. What appeal does the Singaporean real estate market hold for these buyers from Greater China?
The Solid Foundation of China-Singapore Relations
Singapore has enjoyed decades of strong bilateral ties with China, and the relationship between the two countries has continued to flourish.
In 2021, the Monetary Authority of Singapore (MAS) announced joint financial initiatives with the Chinese government, facilitating greater access and partnerships between investors in both nations.
The China-Singapore Demonstration Initiative on Strategic Connectivity saw 30 cooperation projects inked in April 2022. These intergovernmental and commercial agreements include large-scale finance, logistics, transportation, and IT projects.
Additionally, the Digital Economy Memorandum of Understanding between the two nations will foster growth and cooperation in the digital economies of China and Singapore.
These thriving diplomatic ties and the wealth of new opportunities created for investors and entrepreneurs make the city-state an attractive relocation option for China’s high-net-worth individuals (HNWIs).
The Appeal of Singapore to Chinese HNWIs
According to a 2021 survey by Global Times and DATA100, Chinese nationals selected Singapore as their favourite travel destination and favourite country.
Singapore is especially popular with HNWIs from China due to its financial and political stability. It’s also worth noting that Singaporean culture and language are familiar to Chinese migrants.
Singapore’s excellent infrastructure, public services and high global connectivity are encouraging to Chinese HNWIs looking to relocate. The city-state also claims one of the world’s lowest crime rates and highest GDP per capita rates.
These excellent standards of living are why China’s young and risk-taking HNWIs see Singapore as the ideal location to launch new businesses, make investments, establish their families, and network with the rest of Southeast Asia.
Moreover, Singapore’s Global Investor Programme (GIP) offers permanent resident status to foreign investors for a minimum investment worth SGD$2.5 million. This is an ideal opportunity for HNWIs and successful entrepreneurs from China to move or establish new businesses that drive the Singaporean economy.
Furthermore, conditions to qualify for tax incentives at Family Offices (FOs) are now stricter, including requirements for a larger fund size and a higher portion of assets under management (AUM).** This level of exclusivity makes obtaining FOs in Singapore a highly sought-after achievement for Chinese HNWIs.
Tap Into the Chinese Investor Pool With PropertyGuru China Solutions
With more and more Chinese HNWIs looking to make Singapore their home, local developers have the ideal opportunity to redesign their marketing approach to cater to this rapidly expanding demographic.
However, effectively engaging Chinese buyers can present several challenges. Language barriers, gaps in business culture, and the sheer size of the Chinese market are intimidating obstacles.
PropertyGuru China Solutions is developed to help Southeast Asian developers capture Chinese property buyers with three essential strategies - agent acquisition, brand engagement, and customer acquisition. The resources available under China Solutions include exclusive networking events, dedicated digital marketing campaigns, omnichannel brand visibility on major Chinese Internet platforms, and expert property consultancy services through PropertyGuru and our partners in China.
With the support of China Solutions, you can leverage targeted marketing solutions to engage high-net-worth individuals (HNWIs) from China with interest in Southeast Asian properties.
You’ll have access to cutting-edge technology to showcase your properties, boost brand exposure on popular Internet platforms in China and reach out to a rich network of Chinese investors and agents at a range of in-person and virtual events. China Solutions will support you in overcoming cultural and geographical barriers and help you build brand awareness and trust in the eyes of Chinese investors.
Make your impact on a new market with PropertyGuru China Solutions. Reach us at firstname.lastname@example.org to discover more.
*Aw, C. W. (2022, May 22). Chinese on the ‘Run’. The Sunday Times, p. 12.
** Ng, Kelly. (2022). China’s New Rich Drawn to Singapore. The Business Times.