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Singapore emerged as the top foreign investor in Australia and the second most active for both Mainland China and the United Kingdom, according to Colliers International’s Global Investor Sentiment Report.
In Australia, Singapore investors picked up 101 properties with a combined value of US$5.22 billion (S$ 6.72 billion) in the year to October 2014. They also purchased 31 real estate properties worth US$3.17 billion (S$4.08 billion) in Mainland China, while they bought 35 properties to the tune of US$4.58 billion (S$5.9 billion) in the UK.
Singapore investors have embarked on a property buying spree in other markets given the property cooling measures at home country, said the consultancy.
In particular, London was the most favoured outbound investment destination among this group in the year to October 2014. During the period, Singapore investors bought a total 28 properties in the British capital with a combined value of US$4.31 billion (S$5.55 billion). The next top investment destinations are Sydney with US$2.66 billion (S$3.43 billion) and Tokyo which tallied US$2.33 billion (S$3 billion)
Completing the top five are Manhattan and Melbourne, where investors from the city-state purchased real estate collectively worth US$$1.58 billion (S$2.03 billion) and US$1.34 billion (S$1.73 billion) respectively.
“The results are not surprising, as most Singapore investors tend to be more risk averse when investing overseas,” said Terence Tang, the consultancy’s Managing Director of Capital Markets & Investment Services in Asia.
“Although they seek relatively higher returns, Singapore investors also prefer investments providing them with stable income; therefore, they prefer to invest in mature markets that offer the risk/return profile investments that they are unable to get back home,” he added.
Despite the prolific overseas buying activity among Singapore investors, their home country remains an attractive investment destination for both domestic and global investors, especially for those who are eyeing long-term gains, said Tang.
Based on a survey by Colliers, the city-state is the second most preferred investment destination in Asia due to its solid property market fundamentals, with 36 percent of respondents saying so. China bagged the top spot with 41 percent, while Hong Kong clinched the third place with 33 percent.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this and other stories, email nikki@propertyguru.com.sg
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