Saturday, March 31, 2012

Singapore ranked 5th most important city by high net worth individuals

SINGAPORE : Singapore has been ranked the fifth most important city in the world by high net worth individuals.

It has moved up two notches from its previous ranking.

However, the Republic took second spot after London for its quality of life.

This ranking is based on The Wealth Report 2012 by Citi Private Bank and property consultancy Knight Frank.

The state of world affairs, opportunities for wealth creation, economic risks and political stability: these are among the factors that high net worth individuals (HNWIs) look at in determining which are the world's most important cities.

London took top spot in the ranking and is followed by New York, Hong Kong and Paris.

In 10 years time, the ultra-rich expects Singapore, London and New York to retain their positions in the ranking.

But Chinese cities Beijing and Shanghai are expected to be the fastest growing cities.

They will also overtake Singapore to take third and fourth spots in the list.

Debashish Duttagupta, Head of Investment (Asia Pacific) at Citi Private Bank, said: "Singapore not just a good investment destination today or a place for people to invest their money from. (There are) also factors that contribute to Singapore being quite so stable for the foreseeable future as an investment destination. Firstly it has one of the most open economic climate in the world, secondly (it is the) social stability and transparency of the law."

A city's global ranking will have an impact on its prime property sector.

Knight Frank says high net worth individuals are keen to buy prime residential and commercial properties in these top global cities

These cities are viewed as 'safe havens' for long term investments or second homes.

In Singapore, Knight Frank says the sale of high-end condominiums has risen to 57 units in February compared to only 17 units sold in January.

It adds that among the buyers are locals and the affluent from Indonesia, China and India.

Png Poh Soon, Head of Consultancy and Research at Knight Frank, said: "If you look at property investment, most of the high net worth individual's attitude has changed. Of course they changed for the longer term perspective and a longer holding period. Nobody wants to make a loss, so people (are) also concerned about impact of the market, while it is softening, luckily it's not softening in a big way."

Despite the property cooling measures, experts say luxury property prices in Singapore will remain resilient.

The report says this is due to the continued interest among the global super rich in Singapore properties.

View the original article here

Source From Channel News Asia

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