3 factors why Singaporeans are drawn to UK properties

A global tourism adviser named London as the world’s best city, making it more attractive to buyers worldwide.

Pent-up demand brought about by closed borders has pushed Singaporeans to venture into purchasing assets in global real estate markets, especially in the UK and the US, said Sotheby’s International Realty UK. 

For some Singaporeans, the UK is viewed as a safe and profitable destination for property investment, according to Sotheby’s head of Asia region, Catharine Che. One reason for that is because they find the UK to offer a comprehensive legal and economic system. 

A second reason, said Che, is that the UK is home to a “wide range of world-class schools and universities.”

“A significant number of Singaporean buyers choose UK properties, especially those in London, to provide their children with a better education,” she told the Singapore Business Review.

Che also cited a study from global tourism adviser, Resonance, that identified London as the World’s Best City in 2023, for the eighth consecutive time.

“Having been measured against 100 other destinations across the globe, London placed first for the seventh year running, making it more attractive to international buyers,” said Che.

The UK was also ranked by Tripadvisor as a top summer destination for Singaporeans in 2022 because of its vibrant culture and entertainment options. But if Singaporeans are not staying there, the apartment bought can be rented out to professionals and students for extra income, said DBS Treasures Singapore.

“Done long enough, the rental income could even pay for the entire home. To reduce the hassle of managing the property and finding tenants, there are property management firms that specialise in making the rental process a stress-free and pleasant one,” it added.

Sotheby’s Che said smaller investors tend to invest for buy-to-rent purposes, whilst high-net-worth individuals (HNWI) focus more on long-term revenue. According to the Monetary Authority of Singapore, an individual investor has net personal assets exceeding in value the minimum amount of $2m.

They also see investors, who are parents, considering properties for their children. These are often parents with younger children eyeing London’s primary schools.

Where to invest

Che said Manchester, Liverpool, and Birmingham are cities with “very promising rental yield,” and it will attract investors with lower budgets.

For the HNWI, Che advised purchasing properties in Prime Central London, with six postcodes in seven specific areas being particularly popular: SW1 (Belgravia), W1 (Mayfair and Marylebone), SW3 (Chelsea), SW7 (South Kensington), SW8 (Notting Hill), and NW8 (St Johns Wood).

Larger indoor spaces

Consumer behaviour when buying UK properties changed post-2020, said Che. In the past, property investors were looking for bigger houses with beautiful gardens, which are common in the UK’s countryside.

Just after the pandemic, Che said, people want to see outstanding outdoor spaces, such as balcony or terrace apartments when buying properties.

This year, meanwhile, buyers are now looking for large indoor spaces as remote working increases.