Singapore property market propped up by $4.2b boost from eager Chinese developers

The country is their fourth top investment destination worldwide.

The local property market is awash with cash brought about by an influx of Chinese funds. A report by Cushman and Wakefield revealed that Chinese investors have injected $4.2b (U$3.23b) into Singapore’s real estate market from 2008 until the first half 2014.

In Asia, Singapore is a close second to Hong Kong as the top destination for Chinese investors. During the same period, Hong Kong received $5b (US$3.84b) worth of investments from Chinese funds.

Singapore is the fourth top destination worldwide for property investment by Chinese investors. The top spot was clinched by the U.S with $12.6b (US$9.7b), followed Great Britain with $7.5b (US$5.8b), while Hong Kong occupies the third spot.

According to Cushman and Wakefield, Southeast Asia is a favorite location due to its proximity to China and the strong presence of ethnic Chinese communities.

In Singapore, Chinese investors prefer to invest in offices. In neighboring Malaysia, however, land development is the preferred vehicle. Many Chinese developers view the Iskandar Malaysia development zone as having huge potential.

“Local restrictions and cooling growth in the Chinese real estate sector are pushing many investors to diversify to markets in developed countries, where signs of economic recovery and the prospect of asset appreciation promise attractive returns. Encouraging policies in China and abroad, the gradual strengthening of the renminbi, and the desire of many Chinese firms to internationalize are further fueling these capital outflows,” noted Cushman and Wakefield.

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