Top 5 Reasons Why Singaporeans Should Consider Investing in New Zealand Residential Properties articles

1 – NO LEGAL RESTRICTIONS

There are only three groups of people allowed to buy residential properties in New Zealand (“NZ”) currently: Citizens of New Zealand, Australia and Singapore. All other foreign buyers must apply for a special government consent to buy such properties in NZ.

2 – BETTER RENTAL YIELD AND CAPITAL GROWTH

The following data is obtained from the NZ Real Estate Institute (REINZ) and the Singaporean Urban Redevelopment Authority (URA) comparing the rental yield and capital growth of properties in NZ vs Singapore for period from 2010 to 2023:

3 – FREEHOLD IN NEW ZEALAND VS LEASEHOLD IN SINGAPORE

Apartments in Singapore come with a 99-year ground lease which means the owners do not own the land beneath the building and only rent the land from the government. There is also uncertainty on what happens to the ground lease when it expires.

In NZ most properties are “freehold”, “cross-lease” or “unit title”. This means that the owner, owns both the house and the land underneath it in perpetuity and free to do with the land as the owner pleases (subject to standard land and building regulations).

4 – NO STAMP DUTIES

Singaporeans have to pay 2.46% stamp duties on first properties and 17% on second and subsequent properties. There are NO stamp duties whatsoever payable for Singaporeans purchasing any properties in NZ.

5 – TOWNHOUSE OWNERSHIP

Size of NZ is 268,000 sqm with population of 5.1 million vs Singapore’s 743sqm and population of 5.5 million. As a result, most properties sold in Singapore are small apartments whereas in New Zealand, there are more varieties in terms of properties a Singaporean can buy ranging from standalone bungalows or townhouses, right up to large mansions with vast amount of surrounding land.

If you wish to know more, please contact Adelina Ong of Stace Hammond who can advise you further on legal requirements to own a property in New Zealand.