Chart of the Day: Luxury homes in Singapore are laughably cheap

Compared to pricey Hong Kong flats, that is.

More ultra-wealthy individuals might be tempted to buy high-end homes in Singapore as luxury residential prices drop to record lows, according to a report by BNP Paribas.

This chart shows that the price gap between luxury flats in Singapore and Hong Kong has widened dramatically in recent years, after Singapore rolled out a series of cooling measures to curb speculation and foreign buying.

A luxury flat in Singapore costs roughly $2,500 per square foot, while an upscale condo in Hong Kong goes for almost twice the price.

“The high-end discount to HK high-end prices has widened. [This offers] opportunities for arbitrage, in our view,” said the report.