SINGAPORE: Singaporean investors are now looking at property investments in London as they seek opportunities away from the cooling local residential market, said London-based independent property buying agency Black Brick Property Solutions LLP.
Singapore’s Budget 2015, tabled on Monday, acknowledged that the property market in the city-state is cooling and while this is good news for first-time domestic buyers, seasoned buyers are looking at options overseas, said the agency in a statement on Wednesday.
“Although Singapore’s property market is cooling, its economy is not. Singaporeans are already among Black Brick’s biggest spenders [from East Asia with an average deal size of S$8.5 million (RM22.6 million)] and with the budget forecasting a growth rate of 2% to 4% in 2015, Singaporeans will be wealthier and likely to invest more,” said Black Brick managing partner Camilla Dell.
“Our clients are seeing consistently high and growing returns. Buy-to-let landlords can expect to achieve up to a 4% yield in some areas of London and with forecasts predicting between 20% and 25% capital appreciation over the next five years for many of our international clients, London remains an attractive asset class,” she added.
The attraction of London comes as no surprise with Singapore’s Temasek Holdings reportedly a major investor in Pinnacle, which will be London’s tallest skyscraper once it is completed, said the agency.
This article first appeared in The Edge Financial Daily, on February 27, 2015.
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