Why Singaporeans are attracted to Manhattan, New York property
Posted by Wei Min Tan on January 5, 2023
Why are Singaporeans attracted to Manhattan property?
Singapore is my favorite city in the world outside of New York. It’s super organized, clean and safe. I recently spent 2 weeks there meeting with clients, eating hawker food and durian! This is after not being back to Singapore / Malaysia in almost 20 years! I have many clients in Singapore who I’ve not met in person – until the recent trip.
When investing abroad, Singaporeans have traditionally invested in the U.K., Australia and neighboring countries in the region. U.K. because of the commonwealth ties. Australia and neighboring countries because they are much closer and these properties are often marketed in Singapore. New York is different because it’s so far away and there’s no historical ties like with the U.K.
Read about Wei Min’s style in Best Manhattan property agents and Role of a buyer’s broker.
My Singaporean clients are always pleasantly surprised when learning about what Manhattan, New York has to offer as a property investment. Here are some of the key reasons as to why Manhattan is an attractive property destination for Singaporeans.
No Additional Buyer’s Stamp Duty
In New York, there is no additional buyer’s stamp duty levied on foreigners. The transaction costs for a foreigner is the same as for a local buyer. Foreigners do not have to pay an extra 20 or 30 percent as additional stamp duty.
Read Wei Min’s article: Stamp Duty, Closing Costs and New York Property
Easy to buy
The buying process is very straightforward. Once you have a buyer’s broker working with the buyer to identify properties, the whole transaction can be completed without having to be in New York. This is why I’ve not met some of my Singaporean clients in person (only through WhatsApp/zoom).
Easy to rent out
The majority (about 75 percent) of Manhattan residents are renters. This means the renter pool is a lot larger than in Singapore. The renting out process is also straightforward. We would market the apartment to potential renters, review each applicant’s financial and credit standing, and then discuss with the owner on whether to accept a renter. Here in New York we review proof of income, financial liquidity and credit report. This gives the owner a very good understanding of a renter’s financial and credit standing.
Read Wei Min’s article: Top 5 Mistakes To Avoid When Investing In New York Property
Singapore is more expensive than Manhattan. It’s easily SGD $2 million to get a nice condo in Singapore. The condos in Manhattan are larger and have better amenities. The average 2-bedroom condo in Manhattan costs about $2 to $2.5 million and is about 1,200 sqft. One-bedroom costs from $1 million to $1.8 million and ranges from 750 to 900 sqft. My Singapore clients are often amazed at how much more property, luxury and amenities they get here in Manhattan.
Read Wei Min’s article: Average Manhattan, New York Apartment Prices
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