Amongst the top 20 metropolitan cities across the globe, Singapore has witnessed the steepest rise in luxury real estate prices in 2018. While prices in markets such as Dubai have declined by over 1%, the prices of luxury and ultra-luxury apartments in Singapore have increased by over 11% in 2018 alone. Put in other words, while $1Mn can buy 137sqmt space in upscale Dubai market, the same can be expected to buy only 37sqmt in Singapore. This, however, is still behind Monaco where the same amount can buy only 16sqmt and holds the distinction of the most expensive luxury real estate market in the world.
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Backed by already implemented and upcoming changes in real estate regulation in Dubai, nearly 60% of all luxury market sales were from international buyers. Prices of prime properties in Tokyo have also risen by as much as 10% on the back of improved market confidence of the Abe government and investments for the 2020 Olympics. Prices in Europe were also up by 5-9% across Berlin, Paris, and Madrid due to an improved economic condition in the region; however prices in London were down by over 1% owing to an uncertain Brexit.
Most of the sales in the luxury property segment are determines by the real estate regulations in place in those markets and the direction of capital flow. More FDI/FII inflows are expected to boost investor confidence and thereby aid greater sales of such properties. As such, the recent introduction of an increase in stamp duty in the Singaporean markets is expected to moderate the property price appreciation as compared to a current year. On the other hand, Dubai has introduced a slew of measures to make the purchase of property in its key markets significantly easier going forward which is expected to spur luxury real estate sales in this region.