S'pore, HK world's priciest housing markets

Jul 22, 2013 - PropertyGuru.com.sg

 

Housing prices in Singapore and Hong Kong are considered the most expensive in the world, primarily due to higher property taxes implemented to cool the market.

Both cities are favoured by property investors within the Asia Pacific region, especially with newly wealthy Chinese businessmen.

Foreigners in Singapore need to pay 19.3 percent in tax when purchasing a home, while Hong Kong levies a 25 percent purchase tax.

The two destinations are also considered the most expensive markets charging additional taxes on top of the purchase price. London came in third at 7.9 percent, followed by Sydney (7.2 percent) and Bahamas (6.5 percent).

Despite high purchase costs, the annual running cost of a home in Singapore and Hong Kong are cheaper, placing 10th and 14th respectively in the global list.

The top five most expensive cities to run a home are New York, the Bahamas, Miami, Barbados and Moscow.

“The buying price is not the only cost associated with property investment,” said a spokesman for property consultancy Knight Frank, which released the figures.

“Purchasers need to think about taxes and stamp duty when buying, and then the ongoing running costs, which may include more taxes, once they have completed the purchase.”