Higher taxes on horizon as rising asset prices in Singapore mint millionaires

SINGAPORE (Dec 4): Ivan Ng, one of the residents at Braddell View, the former HUDC development that has been put up for collective sale, reckons that he will get at least $2 million for his unit, given the price tag of at least $2 billion for the expansive 1.124 million sq ft plot. That is significantly more than the $1.3 million that units like his are currently fetching in the secondary market.

If the sale of Braddell View goes through, literally hundreds of homeowners like Ng could suddenly see a surge in their net worth and find themselves sitting on a pile of cash. There are 918 units at the estate. In fact, thousands of homeowners have been made richer and more liquid this year as a result of collective sale deals. As property developers rush to replenish their landbanks in anticipation of higher prices in the years ahead, a total of 21 such deals worth nearly $6.8 billion have been transacted so far.

That should further boost the growing ranks of high-net-worth individuals (HNWI) in Singapore. According to Credit Suisse, there are already about 152,000 Singapore residents worth US$1 million ($1.35 million) or more, which is 2.7% more than last year. Their total ­combined wealth stands at US$580 billion, about 8% more than last year. Credit Suisse sees the number of US dollar millionaires in Singapore growing 2.3% annually to reach 170,000 by 2022.

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