Melbourne’s city skyline.
Australia, the UK and Japan have emerged as the top three destinations for Singaporeans looking to invest in overseas property, according to a survey commissioned by property investment firm IP Global.
Australia topped the list with 32 percent of respondents saying they would consider investing there. This was followed by the UK (16 percent) and Japan (13 percent).
These countries are considered favourable for investment due to their political stability, strong rule of law and ease of access. “Property prices in these countries have also been rising, making them an attractive destination for investors looking at medium to long term capital gains,” said Alex Bellingham, Director of IP Global.
For instance, the Australian cities of Melbourne and Canberra recorded the highest annual house price growth in six years during Q4 2015. In the UK, the average residential price increased by 7.7 percent year-on-year in November 2015, with prices in London up 9.8 percent, according to the Office of National Statistics. As for Japan, prices of condos have soared by over 20 percent since 2013, based on data from Japan Macro Advisors.
Moreover, the strengthening of the Singapore dollar against other currencies has been a key factor for many investors seeking out overseas assets, noted Bellingham. Over the past 12 months, it has strengthened against the Australian Dollar, British Pound and the Japanese Yen, making it more affordable for Singaporean investors to purchase properties in these countries.
The Singapore dollar has risen by nearly 30 percent versus the Australian Dollar and more than 14 percent against the Japanese Yen since the start of 2013. It has been rising steadily against the British Pound, gaining eight percent in just the past five months.
The online survey, which was carried out from 12 to 20 January 2016, involved 1,041 respondents from Singapore.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
