Local investors flee overseas to buck Singapore’s sluggish property market

Eager buyers are turning to three key markets.

Singaporeans with cash to spare are fleeing to overseas locations when it comes to property investments. The Monetary Authority of Singapore (MAS) has reported that the value of overseas property investments handled by local real estate agencies increased by 43 per cent, from S$1.4 billion in 2012 to S$2 billion in 2013.

According to a report by iProperty, Malaysia is the most popular location for overseas property investments. Singapore’s next-door neighbor account for 31% of investments.

In particular, Iskandar Malaysia remains a stronghold for investors, with 58%stating investment as a reason for purchase, while 54% cited affordability and 69% highlighted its proximity to Singapore as positives.

40% of respondents are looking to pay less than S$500,000 for overseas properties and the attractive exchange rate continues to draw Singaporeans.
Australia also sees continued interest, but its popularity has slipped slightly from 22% to 18%. The report notes that Australia appeals for its proximity, quality education and lifestyle.

Meanwhile, Singaporean investors’ interest in the United Kingdom has climbed from 9% to 12%. The UK draws interest for capital growth, yields and as a place for buyers’ children to live while they study.

“Overseas property continues to appeal for investment, with private condominiums and serviced apartments as the preferred property type. Respondents also indicated a preference for seminars and exhibitions when purchasing overseas properties, with 53 per cent having purchased their overseas properties through developer shows/seminars/exhibitions in Singapore,” stated the report.
 

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