Manhattan vs. Singapore Real Estate: A Tale of Two Global Cities
Posted by Wei Min Tan on December 11, 2023
Manhattan and Singapore, two thriving global cities, offer vibrant lifestyles and a wealth of opportunities for residents and investors alike. However, their real estate landscapes paint distinct pictures, with both similarities and stark contrasts. Understanding these differences is crucial for anyone considering buying or investing in either market.
- High-density living: Both cities boast a compact, urban environment with limited land availability. This translates to high population density and a focus on vertical development, with high-rises dominating the skyline.
- Global appeal: As major financial hubs and cultural centers, both Manhattan and Singapore attract international buyers and investors seeking a piece of the action. This global influence contributes to robust real estate markets with active buying and selling activity.
- Luxury market: Both cities cater to a high-end clientele, with luxurious properties commanding exorbitant prices. Whether it’s penthouses with panoramic views in Manhattan facing Central Park or landed estates in Singapore’s Sentosa Cove, these exclusive offerings cater to the ultra-wealthy.
- Government intervention: Both governments play an active role in their respective real estate markets. In Singapore, this involves cooling measures to keep prices stable, while New York City has policies like rent stabilization to protect tenants.
Wei Min’s article: Why Singaporeans are attracted to Manhattan, New York property
- Pricing: While both markets are considered expensive, Singapore commands higher prices at $20,305 per square meter, vs Manhattan at $16,756 per square meter. This is particularly true for luxury properties, where Manhattan and Singapore consistently rank among the most expensive in the world.
- Property types: Manhattan offers a wider variety of property types, including pre-war buildings, brownstones, and high-rise condominiums. Singapore’s market leans more towards high-rise apartments and condominiums, with limited options in other categories.
- Land tenure: In Manhattan, freehold ownership is prevalent, allowing buyers to own the land and building indefinitely. In contrast, Singapore mainly operates on a leasehold system, where ownership lasts for a specified period, for example 99 years.
- Taxes: Manhattan real estate taxes are significantly higher than those in Singapore. This includes property taxes, income taxes on rental income, and capital gains taxes.
- Investment potential: Both markets offer potential for capital appreciation and rental income. However, Singapore’s tight regulations and controlled market may offer a more stable environment for certain investors.
Wei Min’s article: Manhattan property market update
Which market is right for you?
The decision ultimately comes down to your individual needs and preferences. Consider factors such as objective, lifestyle, investment goals, and desired property type when making your choice. We focus on Manhattan condos and represent global clients (many from Singapore) interested in Manhattan as a means of asset diversification.
What We Do
We focus on global investors buying Manhattan condos for portfolio diversification and long term return-on-investment.
1) Identify the right buy based on objectives
2) Manage the buy process
3) Rent out the property
4) Manage tenants
5) Market the property at the eventual sale