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Singapore – A Safe Haven Asset Class

Updated: May 28, 2020

Let’s be straightforward here, buying a property is a huge investment and definitely not a decision to be taken lightly. So why should you be placing such a large amount of your assets into a foreign country before conducting checks on it? Continue reading further to see why Singapore should be your choice of investing your hard-earned money in!

“Out of all major world currencies, only Singapore, Switzerland, Thailand and Israel appreciated against the USD in the past 10 years.” – Source:

International elites such as billionaire Jim Rogers, Hai Di Lao’s founder Zhang Yong, Facebook co-founder, Eduardo Saverin, and many others have chosen to flock to the island. That’s because many of the worlds richest know about this open secret. That Singapore is a Safe Haven Asset Class.

Additionally, Singapore has no capital gains tax, and income tax is capped at 22 percent. In 2008, estate duty was abolished. The country is also politically stable, as such Singapore positioned itself as a haven for the rich.

Singapore’s currency is strong, and what does this mean for your property?

This means that investing in Singapore properties equates to owning a safe and low-risk asset.

A comparison of real estate markets for some of the worlds city centers

As seen from the table, the country’s gross rental yield is 3rd highest in comparison to 7 other popular real estate markets, furthermore, while Bangkpaintok is projecting good figures, they have a risk of political unrest, unlike Singapore.

Having a reduced cash outflow also will result in improved overall cashflow. With relatively low mortgage rates as compared to the other countries in the list, this will result in landlords being able to retain most of this value after receiving their gross rental yield! However, do take note that there are other miscellaneous fees that you should be aware of, such as lawyer fees and maintenance fees of the property.

However, you should buy in the near future or even now. Why? [Updated in Regards to COVID-19 Situation]

Because between 2021 to 2025, it is expected that the nation’s Good and Service Tax (GST) may be raised by 2%. The exact timing of this GST hike would depend on the state of the economy, how much expenditures grow, and how buoyant Singapore’s existing taxes are.

In light of the present situation that the world is currently facing right now, you should look into investing in Singapore real estate as current mortgage rates are at an all-time low. In addition, there are government policies currently in place that set the bank the only collect interest repayments only, which helps to improve your cashflow. Within the Singapore real estate market, non-landed investment properties tend to undergo correction by a big margin of almost 30-40% after a year, which should be around Q4 2020 to Q1 2021. This is evidenced by previous financial crises.

Gross movement of private market real estate prices during the Global Financial Crisis
Gross movement of private market real estate prices during the Asian Financial Crisis

How will Property Prices be impacted by the GST Hike?

GST increase and  their impact on the Singapore real estate market.

For one construction professionals will have to charge greater GST, the cost of raw materials for the building of properties would increase. The cost of marketing and sales initiatives would also increase due to the increase in taxes. This would result in slightly higher property prices as these costs are passed on to Property Buyers.

So there’s no better time than now to purchase that dream property investment.

Are you ready to take the smart approach and start investing in Singapore private properties?

If so, contact Estate Magnates via WhatsApp at +6596329840 for more information.

Or simply write us an email at

We will guide you through the whole process of owning your first foreign property in Singapore.

We can also assist you in managing your property after purchase, sourcing tenants for you and providing any other necessary service to ensure your investment generates a constant stream of rental income.


The views, thoughts, and opinions expressed in the text belong solely to the author, and not necessarily to the author’s employer, organization, committee or other group or individual. The author does not accept any responsibility whatsoever for any harm or loss arising from accessing or relying on information contained in this blog post.

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