Strong economic fundamentals are driving investment interest in UK property.
Despite the short-term implications of the UK’s Brexit vote, the country remains one of the top destinations for Singaporeans looking to invest in overseas property, according to a survey commissioned by real estate investment firm IP Global.
The results revealed that the UK was the preferred investment destination for 17 percent of Singaporeans, a one percent rise from last year. Australia continues to be the number one destination for Singaporeans, up three percent from 2016, while Canada is the third favoured investment destination.
IP Global noted that one key factor influencing interest in the UK is its strong economic fundamentals. Latest official figures show the economy grew 0.7 percent from the previous quarter, beating expectations of a contraction due to the uncertainty surrounding Brexit.
At the same time, the Singapore dollar has strengthened against the British pound, appreciating by nine percent over the past year. This has made UK properties more affordable for Singaporean investors, said IP Global.
“We see that Singaporeans are looking beyond any immediate volatility and focusing on what underpins the highly reliable market: an entrenched supply gap and ever-growing demand. We have seen continued interest in London but also in other key UK cities such as Manchester and Liverpool, where the annual house price has been growing at a year-on-year rate of 8.8 percent and 6.8 percent respectively,” said Paul Preston, IP Global’s Head of Sales.
He added: “Singaporeans have a reputation as shrewd investors and our findings have shown that while stocks and shares are the preferred investment asset, there has been an increase over the past year in Singaporeans looking at property abroad.”
In fact, IP Global revealed that more than 60 percent of Singaporeans are planning on investing in assets over the next 12 months, and this will likely boost investors’ appetite for UK property.
Aside from Singaporeans, the UK remains among the top three investment destinations for investors from Hong Kong and the United Arab Emirates (UAE).
The survey polled more than 6,000 respondents from Singapore, Hong Kong, mainland China, the UAE and the UK.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
