Investors are on the hunt for safe havens. The most popular sanctuary – US financial assets – has lost some of its appeal since President Donald Trump announced his sweeping “reciprocal” trade tariffs and stepped up his attacks on the Federal Reserve. Bank of America believes the narrative of “US exceptionalism” has been supplanted by “US repudiation”.
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Many analysts argue that high-quality real estate assets – which offer more effective capital value protection against inflation and allow investors to benefit directly from megatrends reshaping industries and changing consumer behaviour – provide shelter from the onslaught of protectionism.
In Asia, economic vulnerabilities have taken centre stage because of its heavy reliance on trade. JPMorgan says Asia is the most exposed “to US tariff-induced growth risks”, which are “amplified by the region’s concentration in semiconductor exports and exposure to tech supply chains”.
Yet in Asia’s property sector, some markets have haven-like qualities. The first is Singapore’s resilient and relatively affordable housing market. Despite criticisms that successive rounds of cooling measures have proved ineffective in dampening the speculation that has helped drive prices to record highs, the city state benefits from a unique symbiotic relationship between the public housing system and the private property market.
Many Singaporeans receive generous government subsidies and grants, making it easier for first-time buyers to get on the property ladder and, just as importantly, allowing owners to cash in on the strong performance of second-hand flats built by the Housing and Development Board (HDB), Singapore’s public housing authority.
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In fact, one of the reasons the private residential market has held up well is strong demand from owners of HDB flats. “The private residential market is currently driven by domestic buyers, particularly HDB upgraders, who are financially supported by the strong proceeds from the sale of their flats in a robust HDB market,” said Christine Sun, chief researcher and strategist at OrangeTee Group.