Weary buyers flee to foreign shores to buck sluggish local property market

But investment returns are not guaranteed.

Weary Singaporean buyers are fleeing to foreign markets in search of high-yield property. According to the Monetary Authority of Singapore, the value of overseas property purchases transacted in Singapore rose from $1.9 billion in 2012 to $3.0 billion in 2013, before moderating to $1.1 billion in H1 2014.

Properties in the UK, Malaysia and Australia accounted for 91% of total transactions by value and 76% by number in H1 2014, but households also purchased properties in Japan, the Philippines and Thailand.

“The lower price quantums of properties in some markets might have made them more attractive to lower- and middle-income households. In some emerging markets, the tenant pool is not established and the rental markets are not sufficiently mature to provide assurance of investment returns. Households should also do their financial sums carefully – as they would for Singapore properties – before committing to additional debt to finance foreign property purchases,” noted the MAS. 

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