It is easier to say which nationalities do not buy residential property in London than to list all those that do and the city remains a truly global and very cosmopolitan city. Meanwhile, in the east, among the plethora of emerging and ‘new world’ economies, we see Singapore rising to rival London. Here, we compare the western capital with a centuries old reputation for housing other nationalities and the fast growing eastern city-state, which is becoming a home of choice for many in its global region – and beyond.

Singapore: Regional force

Singapore’s established residential market and strategic position within Asia makes it a firm favourite with buyers from that global region. Nearly a third (31%) of all homebuyers in the city during 2011 were foreign, double that seen a decade ago.

Singapore’s overseas market is dominated by Asian buyers, attracted by a familiar language and culture. Malaysians, Indonesians and Indians are all active in Singapore, but the group driving sales at present are the Chinese. The numbers of Chinese buyers have tripled since 2007, as they seek to diversify their investments abroad. As in London, they are relatively small ticket purchasers – almost half of Chinese buyers focus on lower priced units, typically less than £500,000.

Singapore’s introduction of a 10% Additional Buyers’ Stamp Duty in a market already feeling the heat of the challenging economic environment is likely to cool some of this demand. Nonetheless, the city’s position as a growing global centre for finance and business will underpin international investment in the long-term.

London: Global magnet

The eurozone crisis and threat of an Asian slowdown have further boosted London as a ‘safe haven’ and wealth preservation destination for global buyers. Overseas buyers make up 43% of all purchasers in its prime markets. Their presence is felt more strongly in London’s new build market, where they account for 63% of purchasers. At the top end of this market (new build property over
£5 million in value), international buyers were responsible for 88% of all sales.

What sets London apart from any other global city is the diversity of its overseas purchasers. London is a cosmopolitan city, attracting businesses and residents from every part of the world. It is the attraction of this ‘home from home’, the ability to conduct business and a combination of cultural, geographical, legal and political environments that has cemented the appeal of London as the first choice overseas home buying destination.

Taken from
Insights: World Cities Review Spring 2012