Unique selling points underpin the enduring love for Singapore homes

There are many reasons not to buy private homes for investment in Singapore. With net yield at around 2 per cent per annum, it may not make sense to borrow to help fund a home purchase, as home loan rates may exceed the yield from a home.

Investors in homes here incur high taxes. Singapore citizens pay additional buyer’s stamp duty (ABSD) - 17 per cent for those buying their second home and 25 per cent for those buying their third and subsequent homes. Starting in 2023, property tax rates for all residential landlords will rise.  

Typically, buyers buy homes here for long term capital gains. But will such gains be attractive given slow population growth and an ageing population? One may find be able to find other investments that offer higher capital gains versus an average annual price gain in the low single digits over the long term, which one may project for Singapore homes.