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China's property market saw green shoots sprouting towards the end of 2023, putting full-year nationwide sales at around 950 million sqm indicating that the pace of sales decline moderated by approximately 50% in 2023 from the year earlier.
On 17th May 2024, the Chinese government announced sweeping measures to shore up the beleaguered property market by removing the floor on mortgage rates and encouraging local governments to acquire homes to convert them into affordable housing. The People’s Bank of China effectively scrapped the nationwide minimum mortgage interest rate, while cutting the minimum down-payment ratio for first time buyers to 15 per cent and 25 per cent for second homes from previous 20 per cent and 30 per cent respectively.
Policymakers are bringing a sense of urgency to the matter as the Vice Premier urged local authorities to buy back or retract land parcels that have been sold but remain idle, as a means to ease developers’ cash flow strains emphasising the need to push forward the so-called “three big projects” that involve affordable housing, urban renovation and public infrastructure.
These drastic measures saw the property sector in mainland China slowly stabilising while external demand improves which helped to lift growth in the ASEAN region - according to the Asean+3 Macroeconomic Research Office (Amro). Domestic demand in China is likely to remain resilient, underpinned by recovering investment and firm consumer spending. Amro forecasts growth across the Asean nations, plus China, Japan and South Korea to remain strong.
Will Singapore Continue To Be Attractive in 2025?
With the globalization of wealth, high net worth individuals (“HNWI”) often look beyond their home countries for investment and residency options. Singapore has established itself as a prime destination for HNWI from across Asia and around the world, ranking third place after the UAE and Australia on the highest inflow of HNWI according to the Henley Private Wealth Migration Report 2023. The city’s appeal can be attributed to an array of factors: high quality of life, political and economic viability, and diversity in population.
Consistently rated as among the best countries to live in, Singapore offers excellent healthcare facilities, world-class education options and modern infrastructure. The city has long been a popular medical destination for complex treatments, with 5 of its hospitals ranking within the top 150 hospitals in the world. Its world-class public education system is supplemented with established international schools – allowing students clear pathways to higher education opportunities in the United States, United Kingdom, and Australia. The city itself is renowned for its cleanliness and low crime rates.
Serving as a gateway to Asia, Singapore's Changi Airport is one of the world’s busiest airports and has held the title of World’s Best Airport in Skytrax’s ranking for eight consecutive years with more than 100 airlines operating from the airport with direct flights to countries worldwide. The ease of travel establishes Singapore as a base for travel and allows Singapore residents to easily fly to any destination of their choice without hassle with the Singapore Passport - the most powerful in the world, allowing visa-free entry to 193 countries.
Singapore appeals to many with its unparalleled bilateral relationship with all regions and strong track record as a pro-business and politically stable country. It ranks first in the world in political and operational stability, ranked the fourth most competitive economy in the world and is the third largest recipient of Foreign Direct Investment in the world and we are favored by businesses as a springboard for the ASEAN region and between the east and the west, hosting the highest number of completed regional headquarters for the past 10 years in Asia Pacific.
Our Singapore government’s robust policy direction can be seen across all segments of the economy – it has developed a strong domestic regulatory framework to protect intellectual property rights, is heavily invested in digital transformation and has established itself as a leading private banking and wealth management centre globally.
Concern remains regarding trade ties between the two powerhouses - the United States and China. Both of the world’s two largest economies have seen their trade reduced amid high tariffs, protectionism and tit-for-tat trade actions.
“I believe China will continue to be a powerhouse in the region and the main driver of growth for the world. The real estate sector weakness will take a bit of time to overcome, but it will happen, and I expect China's property market to recover by the end of 2025”. said real estate professional Kiwi Lim.
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In Singapore, the landscape of family structures is slowly evolving, reflecting broader societal changes and shifts in attitudes toward family life. Traditional notions of family are expanding to include a more diverse array of arrangements, mirroring global trends and the nation's unique cultural and demographic dynamics.
The Traditional Family Model
Historically, the traditional family model in Singapore has been the nuclear family, typically consisting of a married couple and their children. This structure has been the cornerstone of Singaporean society, supported by policies and cultural norms that emphasize family cohesion and stability. Multi-generational households, where extended family members such as grandparents live together, have also been common, reflecting Asian values of filial piety and collective responsibility.
Shifts in Family Dynamics
However, in recent years, several factors have contributed to the evolution of family structures in Singapore:
- Changing Attitudes Towards Marriage and Parenthood
- Increasingly, young Singaporeans are prioritizing personal and career development, leading to later marriages and lower birth rates. This trend is reshaping family dynamics and contributing to smaller family sizes.
- Rise of Single-Person Households
- There is a growing number of single-person households, driven by young professionals who prefer to live independently and older adults who choose to age in place. This shift is prompting new considerations in housing and social support policies.
- Diverse Family Forms
- The definition of family is broadening to include single-parent families, cohabiting couples, and blended families. These diverse family forms are becoming more visible and accepted, reflecting changing social norms and greater inclusivity.
- Increased Participation of Women in the Workforce
- As more women pursue higher education and careers, traditional gender roles within families are shifting. Dual-income households are becoming more common, and there is greater emphasis on shared responsibilities between partners.
- LGBTQ+ Families
- Although there are legal and social challenges, LGBTQ+ individuals and couples are increasingly seeking recognition and acceptance for their families. This includes same-sex couples raising children and advocating for equal rights.
Unique Challenges Faced in Estate Planning
However, amidst the celebration of diversity, there lies a complex and often overlooked issue: inheritance planning and the unique challenges faced by children from such non-traditional family units.
Legacy planning, a critical aspect of financial and emotional security, encompasses the management and distribution of assets, properties, and wealth to future generations. Yet, for families outside the conventional mold, navigating this terrain can be fraught with uncertainties and complications. Much of the legal frameworks and societal norms often lag behind the realities of diverse family structures, leaving many vulnerable to unintended consequences and disparities in inheritance, resulting in unnecessary hardships.
The Intestate Succession Act 1967 in Singapore
The Intestate Succession Act 1967 governs the distribution of a deceased person's estate in Singapore if they die without leaving a valid will. This legislation ensures that the deceased's assets are distributed in a fair and orderly manner according to predefined rules. Below are the rules for your reference.
For easy reference, the following is a reproduction of the 9 rules of Section 7 of The Intestate Succession Act 1967:
Rule 1: If an intestate dies leaving a surviving spouse, no issue and no parent, the spouse shall be entitled to the whole of the estate.
Rule 2: If an intestate dies leaving a surviving spouse and issue, the spouse shall be entitled to one-half of the estate.
Rule 3: Subject to the rights of the surviving spouse, if any, the estate (both as to the undistributed portion and the reversionary interest) of an intestate who leaves issue shall be distributed by equal portion per stripes to and amongst the children of the person dying intestate and such persons as legally represent those children, in case any of those children be then dead.
Proviso No. (1) — The persons who legally represent the children of an intestate are their descendants and not their next of kin.
Proviso No. (2) — Descendants of the intestate to the remotest degree stand in the place of their parent or other ancestor, and take according to their stocks the share which he or she would have taken.
Rule 4: If an intestate dies leaving a surviving spouse and no issue but a parent or parents, the spouse shall be entitled to one-half of the estate and the parent or parents to the other half of the estate.
Rule 5: If there are no descendants, the parent or parents of the intestate shall take the estate, in equal
portions if there be 2 parents, subject to the rights of the surviving spouse (if any) as provided in rule 4.
If there is a new launch condo selling close to surrounding resale condo price, would you be curious to know more?
Rule 6: If there are no surviving spouse, descendants or parents, the brothers and sisters and children of deceased brothers or sisters of the intestate shall share the estate in equal portions between the brothers and sisters and the children of any deceased brother or sister shall take according to their stocks the share which the deceased brother or sister would have taken.
Rule 7: If there are no surviving spouse, descendants, parents, brothers and sisters or children of such brothers and sisters but grandparents of the intestate, the grandparents shall take the whole of the estate in equal portions.
Rule 8: If there are no surviving spouse, descendants, parents, brothers and sisters or their children or
grandparents but uncles and aunts of the intestate, the uncles and aunts shall take the whole of the estate in equal portions.
Rule 9: In default of distribution under rules 1 to 8, the Government shall be entitled to the whole of the estate.
Real estate professional Kiwi Lim believe that while the Intestate Succession Act provides a structured approach to asset distribution, it may not reflect the specific wishes of the deceased. Understanding the Act’s provisions can help individuals and families navigate the complexities of estate succession with greater clarity and confidence.
"While the law works to ensure a fair distribution among close relatives, creating a will remains the best way for individuals to ensure their specific wishes are honored - how their estate should be distributed, potentially including friends, charities, or other entities not covered under intestate laws." said Kiwi.
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The second biggest economy in the world - The European Union has announced its decision to cut its lending interest rate this week, saying it had made progress in tackling inflation with The European Central Bank (ECB) cutting its main interest rate by 25 basis points from an all-time high of 4% to 3.75% on Thursday, 6 June 2024.
Canada also announced the cutting of its official lending interest rate on Wednesday.
The European Central Bank (ECB)'s move comes as voters head to the polls for EU-wide elections over the next four days, with the outcome expected to reflect people's unhappiness over cost-of-living pressures.
The president of The European Central Bank (ECB) - Christine Lagarde said the outlook for inflation had improved "markedly", paving the way for the rate cut. However, she warned that inflation was likely to remain above the bank’s 2% target “well into next year”, averaging 2.5% in 2024 and 2.2% in 2025.
"It is likely the US Fed Reserve may follow suit in the 4th quarter of this year to cut interest rates by at least 25 basis points as their November elections is just around the corner. From past history, we usually see an interest rate drop before elections in America and Europe." said real estate professional Kiwi Lim who believe that The European Union is beginning to reverse a historic series of rate increases because of elections.
"The drop in Europe's interest rates may not impact Singapore's real estate market as much as a drop in the US Fed Reserve rates if it does happen in the 4th quarter of this year. If the home mortgage rates drop in Singapore, buyers may be more inclined to buy resale properties as they will save on the interest rates and that in turn will also lift up new condo launches in the market, like the upcoming mega condo project in Serangoon - The Chuan Park, which is highly anticipated", said Kiwi Lim. who has been helping his clients navigate the real estate market for more than 10 years.
