EXCLUSIVE: New research from property consultant Cluttons has discovered that Bangkok High Net Worth Individuals (HNWIs) rank London has the number one overseas investment destination, followed by Melbourne, New York and San Fransisco.
The research noted that for London, the quality of children’s education available topped the list of drivers (50 percent), while the lifestyle offered in the British capital through second home ownership was a motivation for one third of respondents. Business growth, combined withthe expansion of investment portfolios was also a significant factor, with 16 percent citing this as an investment driver.
The favourable exchange rates (Thai Baht v Sterling) was the most influential factor behind London based investments, while property yields and capital value growth came were the second and third most influential factors, respectively.
Outside of property, most Thai HNWI prefer bonds as an alternative investment asset class, followed by funds and stock markets.
Cluttons’ International Private Capital Survey 2013/14 reported on the findings of a survey of nine of their global offices representing the views and investment activity of 461 HNWIs around the world. Each investor is expected to make at least one overseas real estate investment over the next twelve months.
London ranked as the first choice in four of the nine eastern HNWI hubs and a top three target for investors in eight of the eastern countries.
Singapore came third in the investment rankings falling from the second place position which it held last year. Although there have been no fundamental changes to the city-state’s overall HNWI appeal, it was edged into third place due to a notable increase in interest in Dubai, compared to that reported last year.
The quality of education available in Singapore (50 percent) topped the list of reasons driving HNWI investments into the city-state. Of the Asian hubs surveyed, Jakarta placed Singapore ahead of Sydney, which was ranked as the second most likely destination for an overseas real estate investment. Meanwhile, Singapore ranked second, just behind London for HNWI in Kuala Lumpur. Interestingly, Singapore based investors now perceive Johor Bahru (Malaysia) as a more attractive investment opportunity than Central London.
Bill Siegle, Senior Partner at Cluttons, said: “It’s encouraging to see London retain its title as the top investment target among High Net Worth Investors in nine of our global offices. The capital has consistently offered strong returns both in the residential and commercial sectors, and our survey indicates that its appeal as in an investment location among Eastern investors will continue into 2014.”
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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