Singapore has overtaken Hong Kong as the second most expensive city in Asia.
Singapore has been ranked as the second most expensive city in Asia, overtaking Hong Kong which is in third place, reported The Straits Times citing a wealth report from Julius Baer.
“Singapore has overtaken Hong Kong as the second most expensive city in Asia as the latter remains out of favour with Chinese tourists,” stated the report.
Shanghai remains the most expensive city for the second year in a row. Watches, cigars, botox, hospital stays and high-end skin cream are especially pricey in the Chinese city.
The findings are part of the bank’s lifestyle index, which shows the costs of luxury living by looking at 20 goods and services across 11 Asian cities, with the data gathered from June 2015 to June 2016.
When it comes to luxury homes, however, Singapore is much more affordable, as prices in the city-state fell 26.4 percent from last year, in local currency terms.
High-end home prices also dropped 21.9 percent in Mumbai and 11.9 percent in Tokyo. Julius Baer compared homes of around 4,000 sq ft in prime locations.
It noted that property prices in Singapore remained soft as previously imposed property loan restrictions and stamp duties deterred non-resident investors and dampened speculative activity.
“However, we are starting to see signs of a bottoming of activity, particularly in the prime districts where sales volumes have increased sharply in the first half of 2016 due to the various incentives and discounts offered by developers,” said Julius Baer.
It noted that Singapore’s reputation as a liveable and business city, and for quality healthcare services, will help attract foreign home buyers over the medium term.
The gradual easing of property prices is also a prudent measure which has “likely forestalled a more aggressive economic adjustment”, it said.
Gold club membership in the city-state has also become cheaper, with prices falling 4.2 percent. This comes as buyers stopped trading in memberships, after the government announced that it was not renewing the leases of two clubs and was taking back the land from three others.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
