By Andrew Batt:
The number of Singaporeans buying overseas property is likely to
increase on the back of the introduction of the significant additional
property cooling measures by the government, according to PropertyGuru –
Asia’s leading property website group.
The measures, which came into effect on Saturday, January 12, included
immediate increase in stamp duties payable across the board by between 3
and 8 percent. The government said it was introducing these “road
barriers” now to slow the property market and avoid a crash in the
future.
Announced in a 12-page press release on Friday evening (January 11),
these measures are primarily designed to quell speculative demand.
Singaporeans buying homes for their own use are largely unaffected.
Following the introduction of previous cooling measures there was an
immediate increase in inquiries from Singapore buyers at Malaysian
developments. Over the following weeks that interest spread regionally
and further afield.
Last year saw what PropertyGuru predicts was a record number of overseas
property developers exhibiting in the city state. Singaporeans were an
increasingly important demographic in many overseas markets, especially
in Malaysia, Thailand, the United Kingdom and Australia. Even less
traditional property investment destinations such as Brazil, Canada and
the Philippines saw substantial numbers of Singaporean property buyers.
Steve Melhuish, co-founder and Chief Executive Officer of PropertyGuru,
said: “Property remains an attractive and secure investment class, and
we expect overseas property purchases by buyers from Singapore will
increase over the coming days, weeks and months.”
With Singapore property prices at all-time high, overseas property
investments look very good value – even in places like Australia and
London.
Melhuish added: “The declining growth in property price rises in
Singapore, combined with the large supply coming into the market and
what is close to recessionary GDP growth, means there is a definite
downside risk for Singapore property investments versus overseas. These
latest measures could well be a tipping point for a property market
correction in Singapore.”
Last year PropertyGuru held 15 successful property exhibitions
throughout Southeast Asia and in Hong Kong. These country-specific
events featured up to 10 developers and included informative speaker
sessions. In Singapore PropertyGuru’s Malaysia, Thailand, Philippines
and International Property Showcase events saw strong interest and
equally strong sales.
“In Singapore we saw strong demand from locals and foreigners at our
events, and we suspect that interest in overseas properties from
Singaporean buyers is likely to increase, especially when you look at
the predicted strong GDP growth and property price outlook for nearby
overseas markets such as Malaysia, Thailand and the Philippines,” he
added.
“There remains a strong desire from buyers throughout Southeast Asia,
not only in Singapore, to invest in property. Overseas property
purchases just became even more attractive, and we expect the number of
overseas developers targeting Singaporeans and Southeast Asian property
buyers and investors to increase during 2013.”
Andrew Batt, International Group Editor of PropertyGuru, wrote this story. To contact him about this or other stories email andrew@allproperty.com.sg
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