Real Estate Remains A Choice Asset

Family offices planning to rebalance their portfolios would turn to real estate, which offers stable cash flows, tax breaks and leverage opportunities. The weaker property prices in the wake of the Covid-19 situation have created opportunities for investors with long-term outlook. 

According to UBS Global Family Office Report 2020, almost half the 121 family offices surveyed are looking to increase their allocation in real estate.

Singapore saw 998 new private homes sales in June, 105 percent increase from the previous month due to pent-up demand and an increase in foreign buying as show galleries reopened. There has been a pick-up in both enquiries and transactions of projects in the Core Central Region (CCR) during the second phase of re-opening after the circuit breaker. Private residential prices also went up by 0.3 per cent in the second quarter, according to the latest report from the Urban Redevelopment Authority.

New Zealand's success in eliminating community transmission of Covid-19 has attracted many kiwis living overseas back to their homeland, causing a spike in demand in the property market. According to government-owned property research company Quotable Value, home prices rose 1.3 per cent over the past three months. The record-low interest rates have also helped to support prices.

In the United Kingdom, a mini housing boom is gathering pace after the threshold for paying tax on property purchases was raised to £500,000 (S$876,000). British property website, Rightmove saw an annual 75 percent jump in buyer's enquiries across Britain since the start of July.