EXCLUSIVE: Hong Kong has ousted Singapore as the preferred first Asian sales destination for many London developers as a direct result of the implementation of Singapore’s Total Debt Service Ratio (TDSR)
The cooling measure, which was introduced on June 29, 2013, was intended to limit the amount of disposable income that a Singaporean can devote to their property loans.
Speaking exclusively to PropertyGuru, Seb Warner, Partner at Knight Frank, said: “Hong Kong is now a stronger market than Singapore for London developers, and TDSR is the sole reason. Singapore was ahead but we’ve seen a change over the last three-to-six months.”
He added that Singapore sales of London properties remain strong, although sales of similar developments in Hong Kong and now stronger.
Warner was in Singapore with Berkeley Homes last weekend with the latest Sandringham House phase of the iconic One Tower Bridge, which was attracting sales to Singaporeans with one-bedroom apartments priced from upwards of £950,000.
Waner added that some Singaporeans who are intent on buying London property and are falling foul of TDSR regulations are seeking offshore financing to obtain their desired home.
Also critical of the impact of TDSR on overseas property purchases by Singaporeans was Doris Tan, Director of International Project Sales for Jones Lang LaSalle Singapore.
She told PropertyGuru: “TDSR has certainly tied our hands.”
She added that her agency will continue to bring London projects to Singapore this year, and is also focusing on Tokyo and other emerging markets.
This article was written by Andrew Batt, International Group Editor of PropertyGuru Group. To contact him about this or other stories email andrew@propertyguru.com.sg
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