Sotheby’s opens S’pore office amid real-estate recovery signs

SINGAPORE – The move by Sotheby’s International Realty to open its Singapore office on Thursday (March 30) is a sign of improving sentiment in the real-estate market, as investors seek a safe haven from the recent socio-political uncertainty over Brexit and US President Donald Trump’s policies, said the company.

Targeting high-end residential listings, Sotheby’s made headlines with its S$25 million transaction of a property in Singapore’s District 10 in 2014. TV host Ellen DeGeneres’ US$45 million (S$62 million) Californian villa is currently listed for sale on the company’s website.

The arrival of List Sotheby’s International Realty in the Republic and its positioning as the South-east Asian headquarters “is timely and strategic”, and will enable the company to capitalise on Singapore’s position as a global financial hub and the growing number of affluent individuals in the region, said Mr Leong Boon Hoe, chief operating officer of List Sotheby’s International Realty, Singapore.

Sotheby’s target audience is high- net-worth individuals (HNIs), who are increasingly flocking to Asia, in particular to South-east Asia. Singapore is emerging as the preferred market for property investments, particularly against the backdrop of the recent property-cooling measures and recent uncertainty over Brexit, according to the company.

“More than ever, global uncertainties are driving astute investors to redirect and rebalance their investments. Residential properties will remain a key part of the ultra-high-net-worth investor’s portfolio, and Singapore’s luxury residential sector is primed for recovery when such interests return,” said Mr Leong.

Against a background of strong growth in global wealth and international mobility, “the concept of global citizenship is gaining traction as a beneficial second or third residence,” agreed Mr Dominic Volek, head of South-east Asia at Henley & Partners, an international residence and citizen advisory firm.

For foreign investors, luxury properties in Singapore remain an attractive option with prices having fallen some 10 per cent since the peak of the market in the first quarter of 2013, said Mr Leong. In 2016, the rate of decline significantly slowed, potentially signalling a bottoming-out effect, he added.

Not only are high-end residential properties in Singapore increasingly seen as value-buys, they represent understated appeal, high quality and a secure investment, said Mr Ong Kah Seng, director of R’ST Research. He noted that HNIs often view Singapore as a stable base for planning their property investment exit strategies.

Singapore’s transparent policies and open economy are attractive to investors looking for low-risk options, said Mr Eugene Lim, key executive officer at property marketing group ERA Realty Network. Top-grade infrastructure, a clean and green living environment, clear rule of law, no capital-gains tax, stable and strong currency, as well as low financing interest rates, all continue to attract HNIs, he said.

However, Mr Lim cautioned that “the margins are extremely thin in the real-estate agency business, and you need a high volume of transactions to make the business work.”

Sotheby’s International Realty achieved S$134 billion in global sales volume last year — a record high for the company.