Before we start, let me ask you one question:

What would you do if you had one million dollars in cash?

Sounds like a dream, right? You could start a wine collection, drive a fancy car, deck yourself with designer clothes, or... buy a property!

But, when it comes to real estate, one million dollars can look very different depending on where you are. In some places, it might buy you a spacious villa with a pool. In other places, it might be just enough for a tiny studio apartment. So let's take a quick world tour to see what one million (SG) dollars can buy you, and see how they compare to your home sweet home in Singapore.

S$1,000,000 (or US$745,000)

Source: Serhant (note: image is of a larger unit)

As it turns out, you can own a slice of the big apple with just S$1 million! Located at Brooklyn's East River Waterfront, this 1-bathroom studio offers resort-style living. And although 433 sq ft may not sound like a lot, the timeless and modern design makes this cozy unit look more spacious. It even comes with distinct areas for sleeping and lounging.

The floor-to-ceiling windows let in heaps of natural light. The kitchen is compact yet luxurious, with its polished quartz counters, sleek cabinets, and top-tier appliances. The bathroom is decked out with marble mosaic floors, a floating vanity, and a walk-in shower that screams "spa day." The unit also comes with a washer and dryer to make laundry days a breeze.

It doesn't end there, you also get access to these amenities:

• Rooftop escape overlooking the East River and Manhattan

• Custom library

• Children's playroom

• Pet grooming stations

• Private cinema

• Co-working lounges

• Game room

• State-of-the-art fitness facilities

• 60-foot pool with poolside cabanas

• And so much more

By the way, we're connected with Ryan Serhant, a top real estate broker, and media personality based in New York, so if you are interested in any of their projects, do let us know and we'll help you link up!

Pros:

It's in a good location. After all, New York has limited land supply (much like Singapore) that drives consistent appreciation. It's a safe bet that pays off over time. Moreover, Brooklyn is especially thriving since the federal government's infrastructure plan promises enhancements to public transit and urban housing. The growing population is also a promising sign that there is a healthy demand for properties.

More importantly, Brooklyn has proven itself as a resilient market. Its' market stood firm during the height of the pandemic while other parts of the city suffered. In fact, Brooklyn property values appreciated over 25% from 2020 to 2022.

Brooklyn's rental market is also quite robust and it's considered the most competitive in the city. With the rise of flexible working arrangements, more renters have been turning to Brooklyn for extra space at a more affordable price than Manhattan. Brooklyn is also getting increasingly popular because renters are attracted to newer residential developments that feature modern amenities.

Another plus point is that there is no additional stamp duty.

Cons:

The average price psf of a studio apartment in New York is US$1,380. Meanwhile, this apartment is priced at US$1720 psf, so it's quite pricey. And even though there's no additional stamp duty, foreign property owners may need to pay other taxes. For example, if the owner passes away, up to 50% of the property's value could be subject to estate tax, which is a big financial risk. And when you decide to sell, there is a 15% withholding tax called Foreign Investment in Real Property Tax (FIRPTA), though you can request an exemption if you report your taxes annually.

Overall, everything in NYC comes with a premium. Labor for renovation projects are generally on the higher side compared to other U.S. cities thanks to strict building codes and limited working hours. Basic renovations can cost around $100-$200 psf and high-end renovations can cost twice as much.

Other than that, setting your property up for rent can come with its own challenges. For example, evicting a tenant here can take over a year because the court system tends to favor the tenants. So you have to properly screen tenants to avoid encountering such issues. Plus, when buying or renting, you'll have to submit a board package with its own set of fees.

S$1,000,000 (or HK$5,700,000)

Source: Midland Realty

With its occupation permit starting in September 2015, this high-floor apartment has 36 years left on the lease. This 448 sq ft unit may seem small but it offers a comfortable living space. Honestly, with a bedroom, a living room, and a bathroom, it's a stark contrast to the infamous caged homes. Not bad at all since it has a great location in Tung Chung, right next to the Hong Kong-Zhuhai-Macau Bridge. Oh, and did I mention that pets are allowed?

The property also comes with access to a clubhouse complete with a gym, a swimming pool, a yoga room, steam rooms, saunas, and massage services. There is also a karaoke lounge, game rooms, a children's play area, a library, a private workspace, and several event spaces. You can also eat or just chill at the caf or bar.

Pros:

Investors can rest easy since Hong Kong has secure property ownership rights that is backed by a good legal system. Moreover, like Singapore, Hong Kong faces a limited land supply issue, which means property is always on high demand. This competitive market drives property values upward so appreciation is practically guaranteed. Plus, you won't have to worry so much about exit strategy. Hong Kong's status as a global financial hub also attracts international investors, further fueling market growth. And the steady influx of expats sustains rental demand, so that's additional income for you. Though if you aren't generating any income from your property, you're not obligated to pay annual property taxes.

Cons:

Due to the limited land supply and tight government regulations, buying a property in Hong Kong as a foreigner can get tricky. For instance, the Hong Kong Property for Hong Kong People (HKPHKP) policy restricts the sale of certain residential flats to Hong Kong permanent residents for a period of 30 years.

However, the biggest challenge is Hong Kong's notorious market volatility. Property values can fluctuate significantly, driven by shifts in the economy, interest rates, and government policies. For example, during the 1997 Asian Financial Crisis, the market dropped by 50%. And during the 2008 Great Recession, it dropped by 20%. Recent pressures from the US-China trade war and travel restrictions have further highlighted the market's susceptibility to external factors. There's also the concerns of geopolitical tensions and fears of the mainland "taking over".

In addition to that, the recent social unrest, triggered by the new national security laws, has pushed many Hong Kong residents and expats out of the country. Along with shifting public sentiment, Hong Kong's once-attractive property market has diminished compared to its former glory.

Furthermore, if you are renting the property out, you need to pay a tax of 15% on the rental income. Adding to this, Hong Kong imposes a high stamp duty rate of up to 30% (the amount can vary and the system is quite complicated) for foreign buyers. Moreover, new apartments in the city tend to be extremely compact by international standards, making price-per-square-foot a critical factor to consider.

S$1,000,000 (or 112,800,000)

Source: RealEstateJapan

For S$1 million, this high-floor corner unit in Tokyo can be yours! It's a 2LDK apartment, meaning there are two bedrooms plus a combined living, dining, and kitchen area. Built in 2009, this apartment has 576 sq ft of living space. This freehold unit is fully renovated and it features hot water floor heating, a garbage disposer, and secure auto-lock entry. And with just three minutes from the station, you'll never have to worry about transport. Bonus: it's pet-friendly!

Pros:

Japan allows foreign buyers to own land and property with the same rights as locals-no extra hurdles, no leaseholds. So, if you've always dreamed about owning a freehold, this could be your chance. On top of that, Japan's mortgage rates are some of the lowest globally, which means owning this property might cost you less per month than renting a smaller place. Then there's the rising tourism in Japan, which means there are good opportunities to set up a rental in popular destinations like Tokyo, Osaka, Kyoto, and even Hokkaido. Generally speaking, the metropolitan area is a safer option since there are always people looking for accommodation.

In Japan, land and buildings are treated separately, which means you can mix and match: buy just the land, just the building, or both. While buildings lose value over time, land prices often hold steady or rise. So if you play your cards right, you can get a good profit. The government also made amendments to the inheritance and gift tax to incentivise foreign property ownership.

Cons:

As I've mentioned, buildings in Japan lose value faster than you'd think. Homes and structures often depreciate to the point where owners may even need to pay for demolition when selling. This trend stems from Japan's preference for newer properties, coupled with the reality of wear and tear, earthquakes, and evolving housing demands. Even earthquake-resistant designs can't stop older buildings from becoming liabilities over time.

The demographic crisis isn't helping either. With Japan's ageing population and declining birthrate, the housing market faces downward pressure, even in major cities like Yokohama and Osaka. About 9 million homes across the country now sit empty, and as the population continues to shrink, oversupply could eventually affect even bustling hubs like Tokyo. While central Tokyo might still hold strong demand, the long-term outlook raises concerns for property values elsewhere.

Then there are the hidden costs that catch many buyers off guard. Taxes alone can add an extra 6-7% to the property price, realtor fees are typically around 3%, and consumption tax is the cherry on top. Let's not forget the additional charges for permits, inspections, or insurance (which would be more expensive since the nation is prone to earthquakes). If you're not careful, these seemingly small fees can snowball into a big financial burden.

Speaking of financing, securing a loan as a foreigner in Japan can be challenging. Japanese banks heavily favor borrowers with local ties, meaning you'll need proof of steady income, tax compliance, and maybe even a guarantor. If you don't have an established financial track record in Japan, getting approved for a mortgage might just give you a migraine.

S$1,000,000

Source: PropNex

This jumbo middle-floor HDB flat in Woodlands is a rare gem that can be yours for just S$1 million. The spacious 1,830 sq ft layout is perfect for multi-generational families, offering 5 bedrooms, including 2 master suites with ensuite bathrooms, plus a study.

This HDB was built in 1995 so there are still 70 years left on the lease. The home is equipped with six brand-new air conditioning units. Its interior design is luxurious, but more importantly, it has good ventilation and natural lighting. Location wise, it is just a short walk away from the Marsiling MRT station, so transport won't be a concern. There is also a supermarket nearby in case you need to go get something real quick, very convenient!

So how does the Singapore market compare to the others?

Like New York and Hong Kong, Singapore faces a limited land issue, which naturally drives property prices higher. Despite having the same challenge, Singapore's property market is considerably better than the other two. All thanks to the robust anti-speculating measures, which have long been proven to help Singapore's real estate market remain resilient to crisis.

While New York battles affordability crises and Hong Kong struggles with volatile prices amidst political tensions, Singapore turns its problem into an opportunity with good housing policies and growth strategies. For instance, HDB offers grants and subsidies that have made homeownership accessible to over 80% of the population, something that the people of New York and Hong Kong can only dream of. Cooling measures are also put in place whenever necessary to maintain a stable market. The government's control over land allocation ensures a steady supply of quality housing, balancing affordability with demand.

Japan and Singapore also share an ageing population issue. However, in Japan's case, the declining population has led to an oversupply of homes, leaving millions of vacant properties across the country. This causes property values to depreciate over time. Meanwhile, Singapore has maintained a consistent demand for housing through policies and other solutions, resulting in sustainable growth. Housing models like HDB's Community Care Apartments, for example, encourage continued homeownership among seniors.

Ultimately, Singapore's real estate climate has a better outlook. Long-term stability and value are almost guaranteed, making it a top choice amongst homebuyers and investors alike.

So, if you had a spare S$1,000,000, which property would you buy?

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