Nearly one-third of Singapore property investors keen to venture overseas

By EdgeProp Singapore / EdgeProp and Knight Frank | February 15, 2019 4:38 PM SGT
A growing number of property investors in Singapore are turning their attention abroad. Of the 803 respondents to the 2019 EdgeProp-Knight Frank Homebuyers’ Sentiment Survey, 29.4% said they would be keen to invest in overseas residential properties in the next 12 months.
This compared to the 28.6% of 611 respondents who indicated an interest in overseas properties in last year’s survey.
The increased interest in overseas properties could be due to the latest round of property cooling measures, which saw higher additional buyer’s stamp duty (ABSD) rates and tighter loan-to-value (LTV) limits from July last year.
Singaporeans buying their second property will now have to pay 12% ABSD, up from the previous 7%. Meanwhile, Singapore permanent residents will now have to pay an ABSD of 15%, up from the previous 10%, when they purchase a second residential property.
Residential properties located outside of Singapore are excluded from ABSD.
Melbourne, London and Bangkok most popular
Melbourne is the most popular overseas market among Singapore's property investors, according to findings from the EdgeProp-Knight Frank Homebuyers' Sentiment Survey
Based on the survey, which was conducted in 4Q2018, Melbourne (23%), London (21.7%) and Bangkok (17.9%) are the most popular overseas markets among Singapore property investors (see Chart 1).
Chart 1
This is a notable shift from the 2018 survey, in which Bangkok (29.1%), Melbourne (29.1%) and Kuala Lumpur (27.4%) were voted as the most popular overseas investment destinations.
A significant decline in interest in Kuala Lumpur properties was also noted in this year’s survey. Only 13.2% of respondents said they would consider investing in Kuala Lumpur properties in 2019. Political factors and tightening policies on foreign ownership...