SINGAPORE PROPERTY: LUXURY BUNGALOWS ATTRACT YOUNG MILLIONAIRES

Singapore’s luxury bungalows which built on lots of at least 1,400 square meters are attracting new buyers - young generation of super-rich people who make money in non-traditional fields.  The rush of those young millionaires to buy high-end bungalows makes transactions in this property segment become vibrant and the price of a villa is pushed higher despite the Singapore Government's efforts to implement measures to reduce the fever in real estate.

Singapore property: luxury bungalows attract young millionaires / ph: [email protected]

Last year, the number of luxury bungalows sold in Singapore tripled compared to 2019, reaching 60 units.  The average price per square meter of these properties also hit an all-time high - According to data from real estate market research firm Knight Frank.  There are a total of about 2,500 luxury bungalows in Singapore.

In the past, buyers of luxury bungalows in Singapore were usually businessmen in traditional industries, stock and commodity traders, senior lawyers, famous doctors. In recent years, especially after the pandemic, startup owners, e-commerce business operators, and those who made their fortunes through virtual currencies began to emerge as the main buyers in the high-end real estate segment in this country.  

There is another reason making these bungalows special is a regulation that almost only Singaporean citizens can buy.  Foreign nationals can meet this requirement by becoming Singapore citizenship or marrying a Singaporean.

In Singapore, a land-scarce country with about 80% of the population living in government-built high-rise apartment buildings, luxury bungalows are often located in expensive districts with strictly guaranteed security and privacy.  Some of these luxury houses are more than 100 years old.  The plot of land to build such luxury houses is at least 1,400 square meters, and construction area of ​​the house accounts for no more than 35% of the total land area.

The force of young buyers is pushing the price of high-end bungalows in Singapore to skyrocket.  The average price per square meter of these luxury properties has increased by about a quarter since 2009 to S$18,548 per square meter - According to data from Knight Frank.

The luxury bungalow craze is just one part of the general property craze in Singapore - Housing prices in this country in 2021 rose the most over a decade.  The Singaporean real estate market keeps the uptrend during the pandemic thanks to low interest rates and bullish expectations.

To curb the escalation of house prices, the Singapore Government in December implemented a series of measures including increasing stamp duty on second house buyers and foreigners buying private houses.

However, these measures seem unlikely to stop young millionaires who earn money at a faster rate.  For them, buying luxury bungalows is a way to prove themselves rather than to preserve their property value.

SINGAPORE PROPERTY: LUXURY BUNGALOWS ATTRACT YOUNG MILLIONAIRES