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Editorial
Published September 25, 2009
Singapore's safe-haven premium
AMID the debate about the current state of the property market in Singapore, a survey report which came out this week might shed some light on why real estate here has rebounded faster than most pundits expected. The survey was commissioned by Reach, the Singapore government's feedback unit, and polled 360 new Singapore citizens and permanent residents, who were asked a number of questions about their newly adopted country. Among the survey's key findings were that:
# 95 per cent would recommend Singapore as a place to live in
# 93.3 per cent find the overall experience in Singapore better than expected
# 87.5 per cent have no problems adjusting to Singapore's political system
# 80.6 per cent find the cost of living here manageable.
Taken at face value, the survey results are a ringing endorsement for Singapore as a highly livable city. But yes, as noted by some, the positive findings are perhaps not surprising, given that the sample was drawn from those attending their citizenship certificate presentation ceremonies. 'They wouldn't be new citizens if they don't enjoy living in Singapore,' said sociologist Terence Chong of the Institute of Southeast Asian Studies.
But informal discussions with expatriates and permanent residents generally also yield similar responses: Singapore is a very easy-to-live city. Against the backdrop of Singapore's attractiveness as a city to citizens of the world, and our liberal immigration policies, it is little wonder that the number of residents in this small island has been rising at a steady clip in the last few years. As a direct consequence of that, demand for housing has also been rising. This explains, to some extent, the continued firmness of rentals as well as property prices.
While Prime Minister Lee Hsien Loong has - in part, responding to sections of the community which have voiced misgivings about the growing number of foreigners - said that there would be a slowdown in the influx of immigrants, that by no means suggests that the tap will be turned off. PM Lee also made clear that Singapore will 'need new immigrants for the indefinite future'. Wooing foreign talent to sink roots here will therefore remain a key policy, even if the numbers are calibrated from time to time. The existing bigger population base, and continued inflow of new residents, will ensure a minimum level of demand for new housing every year.
Meanwhile, Singapore has emerged from the economic crisis relatively unscathed, as a safe haven, an oasis of stability and a well-functioning 'hub city' in the world's fastest growing region. It will continue to attract human and financial capital from the region and the world. In a sense, ultimately, owning a property in Singapore can be likened to having a stake in a company run by the Singapore government. Just like bluechip stocks, it is not inconceivable that well-managed countries and livable cities too should enjoy a premium.
