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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