More foreign property developers are launching their projects in Asia, with some even starting their campaigns in the region first, reported The Straits Times.
New York firm Extell Development Company started selling its 80-storey condo One Manhattan Square in Taiwan, China, Singapore, Hong Kong and Malaysia in November before launching it in the US. Unit prices range between US$1 million (S$1.4 million) and US$3 million (S$4.2 million).
Singapore’s residential sector saw apartment prices drop 4.3 percent year-on-year in September amid property cooling measures.
Meanwhile, Australia, Britain and the US have witnessed an increase in property prices over the years, revealed the Knight Frank Global House Price Index for Q3 2015.
Australia posted an annual price growth of 9.8 percent in the 12 months to 30 September, while the US and Britain recorded an increase of 4.9 percent and 3.7 percent respectively.
Santhosh Gowda, Chairman of London real estate firm Strawberry Star Group, said: “The London property market offers higher returns than any city as of now. Many prestigious developers are unveiling their projects in London, Singapore and Hong Kong as all these locations are very important from the investors’ point of view.”
As an indication of how important Singaporean investment is in the London property market, Strawberry Star opened an office in the city-state this year to provide lettings, sales and management services to foreign investors.
JLL, Extell’s partner in marketing One Manhattan Square, revealed that Asian investment in the US residential property market has doubled since 2010, accounting for 35 percent of foreign purchases.
In London, at least 50 percent of property investors are foreigners, the majority of whom are from Hong Kong, the Middle East and Singapore, said Gowda.
London property specialist Johns&Co noted that Singaporeans acquired 25 percent of luxury new build units in London. In fact, 75 of the 360 units sold at Providence Tower were purchased by Singaporeans. This translates to almost S$60 million of investment, noted Singapore-based client relationship manager Duncan Peacock.
The lure of overseas property for Singaporean investors is partly driven by the falling prospects of real estate here, said analysts.
A survey by Colliers International showed that Singapore is the top investor from Asia investing in Australia and the UK.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
