Singaporeans’ top real estate destinations include Australia, Thailand

Following the Lucky Country in our buyer rankings are Thailand, Malaysia, Japan, and the United Kingdom. The ranking is based on data on enquiries made by property buyers located in Singapore between January 2020 and November 2023. This data offers valuable insight into the preferences of Singaporean property investors when considering overseas investments.

"Not coincidentally,” said Ansari, "Australia is also the number-one destination in the world for millionaires. Some 5,200 millionaires moved to Australia in 2023. That compares to 4,500 who moved to the UAE and 2,100 who moved to the United States. That’s according to data from Henley & Partners."

Motivations for Overseas Buying

The global focus has been on Chinese buyers for the past decade and a half, but buyers from Singapore have been active for longer. While the total international residential real estate investment out of Singapore isn’t comparable to the total from China, it still far out-paces any other country on a per-capita basis.

There are several reasons that Singapore is one of the world’s top buyers of international real estate, but at the base of them, all is a cultural preference for property investment and an abundance of capital. Singapore is a small country with a constrained domestic market, high levels of wealth, and an international outlook.

When Singaporean investors purchase overseas residential real estate, they are usually seeking to diversify their investments, take advantage of Singapore’s strong dollar, avoid higher transaction costs at home, provide housing for their children who are studying abroad or obtain second homes for retirement and holidays.

Australia: Australia tops the list, receiving 27.5% of all outbound residential property enquiries from Singapore. This significant share reflects Australia's popularity among Singaporean investors, due to factors such as cultural ties, educational opportunities, a stable real estate market, lifestyle, and proximity. The city of Perth, on Australia’s West Coast, is just five hours and 10 minutes by flight time from Singapore.

Singaporean buyers don’t find Australia's foreign buyer restrictions too onerous. Offshore buyers are limited to off-the-plan properties in the country, but Singaporeans often find new 3 of 5 projects the most attractive product on the market. And permanent residents may purchase on the same terms as an Australian citizen.

Because Singapore buyers tend to have ample cash, they have an advantage in a market like Australia where mortgage rates are high. “In the 2022-23 financial year, Singapore buyers acquired AU$300 million (US$199 million) of residential real estate in Australia. They bought more Australian residential property than did buyers from much larger countries, including India, Indonesia, the United Kingdom, and Malaysia.

Thailand: Thailand follows with 16.5%, indicating its attractiveness as a nearby investment destination with potentially high rental yields and a favourable lifestyle appeal. Thailand is also attractive because prices are extremely low compared to homes in Singapore. “Besides Bangkok condos, holiday properties in the Thai resorts of Phuket and Pattaya are popular among Singaporeans because of the lifestyle they offer at affordable prices. “Official data suggests that foreign buyers in the first half of 2023 accounted for 11% of residential transactions, with buyers from Singapore joining others from mainland China, Hong Kong, Taiwan, Myanmar, and Japan.

Malaysia: Malaysia is the third most popular destination for Singaporean buyers, accounting for 13.2% of their purchasing enquiries. Malaysia is an obvious choice for property buyers because of its proximity and economic ties to Singapore. “The new Singapore Rapid Transit (RTS) project that will shift 10,000 persons an hour between the two countries is more than half complete and promises to increase the number of Singaporeans living the cross-border lifestyle, with first or second homes in Johor Bahru, 4 of 5 Malaysia, and jobs in the city-state. IQI, the agency network that is a member of Juwai IQI, saw a 17% increase in Singapore buyer transactions in Johor Bahru in the first quarter of 2023, compared to the same period last year. IQI believes the number of people living cross-border could increase by 50,000 by 2030.

Japan: Japan ranks fourth with Singaporean residential buyers and receives 12.6% of their global purchasing enquiries. It is appealing due to its strong economy, unique culture, and potential for property value appreciation. “The depreciation of the yen this year has also attracted many institutional and individual investors in Singapore. From the hotel industry to the logistics hub, Singaporean investors have invested heavily in Japanese commercial real estate, making Singapore the largest foreign investor in Japanese real estate this year.

United Kingdom: The United Kingdom, capturing 6.6% of enquiries, reflects its status as a significant global financial hub and a popular destination for education and lifestyle. “Like buyers in other Asian countries, many Singaporeans buy in the UK to provide a residential base in the country for their children who are studying there.

United States: Many Singaporean buyers find that the price of apartments in Manhattan is about one-fifth cheaper on a per square foot basis than in Singapore. In addition, there are no restrictions on buyers from Singapore in the United States. “In Manhattan, Miller Samuel reports the average per square foot sales price in the third quarter of 2023 was US$1,622, equivalent to S$2,167. That compares to S$2586 in Singapore’s Core Central Region in Q2, according to Juwai IQI’s Singapore partner, OrangeTee.

Vietnam: The turmoil in Vietnam's property sector in the past year or two has not entirely deterred Singaporean buyers, who believe that there are still investment opportunities in Vietnam's property market. “Ho Chi Minh City and Hanoi are still among the 10 most attractive destinations for crossborder investments by Asia-Pacific buyers, according to a survey. Singaporean buyers are among the most active, along with buyers from Hong Kong, mainland China, the Republic of Korea, and Japan.

Cambodia: Singaporean property developers and investors are also making their presence known in high-end condominiums in Phnom Penh, Cambodia, which attracts Singaporean investors with a high return on investment. Yields in Singapore itself are moderately good by international standards, at 4.8% on average, but are significantly below the 6% to 7% average rental yield reported in Phnom Penh, Cambodia. 5 of 5 Indonesia: “The top Singaporean buyer destinations in Indonesia are Jakarta and Bali. Most Singaporean buyers in the country are purchasing second homes, followed by investment purchases. The residential market in Jakarta remains challenged, with limited price growth and a 12% fall in transactions in the second quarter.