Property Futures

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Singaporeans buying more real estate abroad?

Singaporeans buying more real estate abroad?.

Singaporeans buying more real estate abroad?

Singapore is a hub of financial activity, and the property market for investors no exception. Developers and estate agents flock to Singapore to try and entice the wealthy populace to invest in real estate abroad, especially in Australia.

The Australian market has always held great interest for Singaporeans, with a stable and growing economy, rental demand outstripping housing supply in its major cities, a mild climate, and world-class universities where Singaporeans especially like to educate their children.  Here’s how it’s looking from a property investment standpoint:

  • Sydney:  Sydney, the largest, most famous, and most populated city in Australia is also home to the vast majority of big businesses based in the country. The population is expected to grow by 1.6% annually between 2011 and 2031, and also has the biggest gap between housing supply and demand in the entire country (an estimated 25,000 new homes are needed every year fulfil underlying demand).
  • Melbourne: Melbourne, Australia’s second city, has been voted the most liveable in 2011 and 2012. Cosmopolitan, ideal for foodies and sport enthusiasts alike, the population is exploding, thanks in part to its acclaimed lifestyle and liveability. In fact, the current population of 4.1 million is expected to grow by another 1.1 million by 2031. The pressure from the increasing housing demand is likely to bode well for strong capital appreciation, strong rental demand, and therefore, strong rental yields.
  • Adelaide: Adelaide, a surprising new comer in the top-tier property markets, was once known as a sleepy agricultural town with excellent wine grapes and other produce. But while everyone was sipping their wine, Adelaide officials were planning. With one of the strongest infrastructures in the entire country, and city planning projects accounting for a huge population boom, new businesses and residents are flocking to the idealic country-side-turned-cultural-city. If it isn’t on your radar for property investments in Australia, it should be.
  • Griffith: Griffith. Griffith? Many foreign investors look to the major cities for condo or apartment style investments. But with the emergence of Adelaide and now Griffith, more options are available to a broader selection of investors.  Australian property expert, Rodney Prestia, believes that most Australian tenants have families and so are not looking for apartments in city centres but rather house-and-land packages, which makes Griffith another ideal market for real estate investment.

 

Why are Singaporeans looking outside of Singapore?
Some experts says Singaporeans are being put off property investment in Singapore due to the recent cooling measures put in place by the government to regulate housing prices and avoid a property market bubble. That makes no sense — Singaporean citizens are unaffected by the cooling measures. It’s the foreigners looking to invest in Singapore who may be put off by the cooling measures, which include a higher stamp duty and higher deposits that are now required for foreigners who already own a property in Singapore and wish to buy another.

Singaporeans, just as citizens of many countries across the world, look for investment opportunities outside of their own countries either to expand their portfolios, to own (instead of rent) a property in a location where their children will go to university, as a holiday home investment, or for retirement purposes.

 

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This entry was posted on January 29, 2013 by in Future, Investment, Property and tagged , , .

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