Why foreign investors love Singapore real estate?
- Vann Lim
- Nov 8
- 3 min read
Updated: Nov 17
Whenever I speak with foreign investors, I always get the same question: Why are global investors so confident in parking millions into Singapore property, even with a 60% ABSD?
The answer boils down to three words: stability, transparency, and scarcity.
Singapore’s political and economic stability attracts global investors
Singapore is one of the few countries in the world that has maintained political stability for decades. The government is transparent, pro-business, and fiscally disciplined — Singapore runs balanced budgets and holds over US$400 billion in foreign reserves.
This stability shows up in our credit rating too — AAA across all three agencies (S&P, Moody’s, Fitch) — putting Singapore on par with Switzerland. When you invest here, you’re essentially buying into one of the most credible and well-governed financial systems in the world.
That’s also why the Singapore dollar (SGD) is seen as one of Asia’s most stable currencies. It’s managed through MAS’s exchange-rate-based monetary policy, backed by real foreign reserves. For investors from countries where currencies swing 5–10% a year, Singapore real estate becomes not just an asset, but a hedge.
Singapore property as a safe haven and store of value
Unlike many global cities that rely on speculative demand, Singapore’s property market is anchored by genuine end-user demand — 80% of citizens own their homes. This means the market has deep, organic resilience.
Over the last 50 years, the URA Property Price Index has risen more than 14-fold, despite several global recessions and over 15 rounds of cooling measures. Prices may pause, but they rarely collapse — because the fundamentals stay intact.
For foreigners, that long-term chart looks like a slow, steady wealth curve — the kind of stability you’d expect from a Swiss bond, not an Asian city. That’s why Singapore property is often seen as a store of value — not a speculative play.
Limited land supply and strong urban planning drive long-term growth
Here’s the simple truth: Singapore is small. Just 735 square kilometres, with 90% of land owned by the state. Because of this, supply is controlled tightly through the Government Land Sales (GLS) programme.
The Urban Redevelopment Authority (URA) releases land only when demand is ready — ensuring the market stays balanced. At the same time, long-term transformation projects like the Greater Southern Waterfront, Jurong Lake District, and Punggol Digital District continue to unlock new value pockets across the island.
These aren’t just infrastructure projects — they’re catalysts for capital appreciation. In Singapore, every new MRT line or district transformation has a measurable impact on property values in the surrounding area.
Zero capital gains tax in Singapore strengthens long-term returns
One more thing foreigners really appreciate about Singapore property — there’s no capital gains tax.
If your property appreciates, the profit is entirely yours.
Unlike many markets, where capital gains or wealth taxes eat up a large chunk of your returns, Singapore keeps the system clean and investor-friendly. As long as you’re not buying and selling like a trader, you enjoy full upside with no tax drag.
For long-term investors, especially those coming from countries with heavy property taxes, this alone makes Singapore one of the most efficient places to build and preserve wealth through real estate.
Why foreign buyers continue to choose Singapore real estate
Foreigners don’t come to Singapore property for wild returns — they come for predictability. In a world of volatility, Singapore offers a rare combination: a strong currency, transparent governance, and absolute scarcity.
As I always tell investors, you’re not just buying a home here; you’re buying into one of the most trusted financial ecosystems in the world.
Ready to explore your options in Singapore property?
If you’re considering a move into Singapore real estate—or want a second opinion on your current plan—Ben and Vann would love to help.
We’ll walk you through the numbers, neighbourhoods, and exit strategy so your home doubles as a wealth-building asset.
Book a consultation with Ben and Vann to get a tailored game plan for your budget, timeline, and goals.
