Singapore’s highly expensive properties are now cheaper as compared to luxury properties in other major cities, according to a property analyst at JPMorgan in Singapore.
There has been a drop of 15-25 % prime and luxury residential prices making it an attractive destination for ultra high investors.
Singapore’s government does not allow developers to keep unsold units for a longer time. If units are unsold two years after a project’s completion they face extension charge of 8 % of the proportional land cost for the first year, rising to 16 % in the second year and 24 % in the third.
Singapore’s government imposed a series of measures which adds additional 15 % to the purchase price for foreign buyers and Singaporeans with more than one property. While the additional cost may bother buyers at the high end, it has affected buying interest in luxury properties in the city-state.
But due to tax treaties, buyers from some countries, including the U.S., Switzerland and Lichtenstein, are exempt.