Singaporean buyers are becoming more cautious when it comes to purchasing foreign properties, reported Singapore Business Review citing the Monetary Authority of Singapore (MAS).
In its latest Financial Stability Report, MAS revealed that Singapore households pumped $0.4 billion into overseas property transactions in 1H 2015, down from the $1.1 billion injected in 1H 2014.
“This suggests that Singaporeans are adopting a more cautious attitude towards such investments,” said the MAS.
Overseas property deals have been on a steady decline since its peak in 1H 2013, when the deal value stood at around $1.7 billion.
“While the weakening of some regional currencies vis-à-vis the Singapore dollar may lower the cost of investing in overseas properties, households should be mindful of the additional risks associated with investing in overseas property markets,” warned the central bank.
“In particular, currency fluctuations could affect the value of their debt obligations and their rental returns. Potential oversupply problems in overseas property markets could exacerbate the risk of significant price falls and capital losses to investors. Households should continue to carry out due diligence before making any property investments, including for overseas properties,” it added.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
