The number of overseas property launches in Singapore fell to 78 projects in Q1 2015 from 103 during the same period last year, revealed property consultants and reported in the media.
There were fewer launches from traditional markets like Australia and London, while new places like Cambodia witnessed growing interest.
Specifically, there were 26 projects from Australia, down from 40 a year ago, and 24 from Britain, down from 30 previously.
Others included four from Cambodia, six from Malaysia and 11 from Japan, up from zero in Q1 2014.
Gavin Sung, head of international residential sales, Savills Asia Pacific, revealed that investors are turning their attention to the region.
“There has been an increase in regional countries being marketed as lower value and more emerging markets look to explore inward investment,” he said.
Developments from Tokyo and Cambodia have done particularly well.
JLL saw all the units from Parkhouse Nishi-Shinjuku Tower 60 in Tokyo allocated to Singaporeans snapped up.
CBRE also sold all the units made available at the Global Front Tower in Tokyo.
The consultancy noted that demand for property in Tokyo is high due to the limited supply, ease in funding options, favourable exchange rate and reputation as a global centre with a highly regarded legal system.
Cambodia has also emerged as a popular destination, partly due to a law passed in 2010 permitting foreigners to own units.
Darren Yap, director and chief executive officer of Yuen Development, attributed the robust demand to the lower purchasing power required to enter the market compared with mature areas such as London.
Although interest is on the rise in some areas, it is falling in the once popular hotspots of Australia and Britain, possibly due to the total debt servicing ratio which has crimped borrowing since June 2013.
The declining number of launches in Singapore may also be attributed to recent trends in overseas markets.
For instance, UK developers are experiencing robust demand at home; hence, they have less need “to spend the additional money to expand their marketing strategies overseas”, added Savills’ Sung.
Romesh Navaratnarajah, Singapore Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
