As a regional real estate investment hub and international finance centre, Singapore is going from strength to strength, and thanks to the unfolding Asian century, when the global locus of political and economic power will shift from West to East, its long-term outlook is brighter than ever. Singapore’s real estate investment jobs boom means businesses across the board are crying out for talent, and for candidates, this is translating into better career advancement prospects, improved offers, a shorter hiring process and more opportunities for diversified work experience.
Read on to find out how careers in Singapore’s real estate investment industry are transforming, and why it offers great prospects, excellent remuneration and the opportunity for rapid career growth.
Solid Foundations
“Singapore’s growth as a real estate investment hub is being driven by numerous factors, with the most important being a light-touch regulatory regime, favourable taxation policies, a sophisticated financial service ecosystem, the rule of law and common law system, strategic geographical location, political and economic stability, and an innovative approach to technology,” says Gough Singapore Regional Director Sheila Heng.
Its many strengths are obvious, especially when it is viewed alongside the only Asian peer of a similar standing, Hong Kong, which has been grappling with zero-COVID policies and a disruptive fifth infection wave.
Singapore is the second-best place to do business worldwide, according to The World Bank Doing Business 2020 report, and it is home to a fast-growing ecosystem populated by lawyers, asset managers, accountants, banks, trustees, custodians and IT providers, to name a few. It’s also home to 1,000+ fund management companies, 150+ banks, and 200+ insurance companies, according to the Wealth Management Institute.
And with a world-leading education system, low crime rate, and vibrant cultural life, it’s a great place to live for families. In January 2021, Singapore was named the world’s best location for East Asian expatriates to live in the world for the 15th year in a row, according to ECA International‘s rankings.
“Against this backdrop, we’re seeing the demand for Singapore real estate investment professionals rising across private equity, real estate investment trusts, wealth management, asset management and private banking. Most definitely, private equity in Singapore is thriving,” says Sheila. It was the only Southeast Asian market to record growth in terms of private equity deals and deal value in 2020, according to a report by Bain & Company.
Keeping it in the Family
Asia’s rise as an economic powerhouse is exemplified by the increasing numbers of ultra-rich people being created in the region. This is in turn fuelling demand for real estate investment, as families that built their wealth through a family business look to diversify their wealth. Not only that but the first generation of ultra-wealthy Asians whose riches were forged in the region’s economic miracle that began some 50 years ago are approaching a huge generational transfer of wealth, which will require more investment professionals to manage.
A growing number of extremely wealthy Asian and non-Asian families are attracted to Singapore to set up a base for investing, often in real estate. In Singapore, the number of family offices—the entities rich families use to manage their money—doubled to some 400 from 2019 to 2020, according to the Wealth Management Institute.
Favourable Policy
Part of Singapore’s strength as a real estate investment centre is the investment vehicles that are permitted. For example, the city-state’s Variable Capital Company (VCC) vehicle, which was brought in a couple of years ago to much fanfare, provides many advantages for real estate investors. It is an indicator of the government’s commitment to developing Singapore’s status as an investment hub.
The VCC enables an investor to domicile a real estate investment fund in Singapore, and funds already domiciled elsewhere, such as The Cayman Islands, can be re-domiciled to Singapore. VCCs can serve as a single-family office with investment governance parameters, and they have various options to segregate assets and can be structured as an umbrella or standalone entity. Importantly, VCCs provide numerous tax advantages.
Another key emerging trend is the restructuring of investment trusts, with trusts looking to expand their real estate investment activity outside of Singapore.
Recruitment in Singapore’s Real Estate Investment: Top trends
“With demand for Singapore real estate investment professionals at a high level and growing, career opportunities are there for the taking,” says Sheila.
Here’s our inside take on the key developments that are benefitting candidates:
- Singapore real estate developers are showing a strong preference for investment professionals with regional experience. You now need to have international expertise and knowledge, not Singapore only;
- Asset managers are moving away from job descriptions that focus on operational functions to emphasising investment functions;
- The jobs market is moving very fast, so it’s a great time to search for a job, though speed is of the essence; and
- Applicants with the right skills and experience are being offered more senior roles and better remuneration than the position they apply for.
If candidates would like to talk about their career development in Singapore’s Real Estate Investment or Asset Management, they are more than welcome to get in touch with our Singapore team of recruiters. We would love to help our candidates make the most of the current booming market conditions.
