The property trends amongst Singapore investors seems to have spread to the overseas market recently.
The favourable exchange rates and the forecasted high rental yields, as well as the lure of owning luxury properties in cities like New York and London have attracted local property investors to attend foreign property launches.
According to several property agents and dealers, among the sell-out launches they have seen recently were properties located in London, US and Australia.
One property agent said that London remains a popular destination among local investors, as the favourable currency rate against the Pound meant that Singapore investors can save up to 35 percent when purchasing London homes.
Mr. Julian Sedgewick, senior associate director of international marketing at Savills Singapore, also said that property investors made sure to have a substantial return of between 20 and 30 percent from potential capital gains in London properties "once the depreciating currency recovers."
He added that the newly-built apartments were the best-selling among Singaporean investors, who are taking the opportunity to cash in on London’s "tried and tested" real estate market.
Mr. Sedgewick also noticed that besides Singaporean investors, investors from Hong Kong and mainland China are jumping on to this new trend.
"The market cooled off in 2008 but with the weakening Pound, it has come back and supply is short at the moment.”
Despite lack of available sales data for such foreign property purchases, many analysts said that they have not seen such huge growth in the London property market, even before the financial crisis broke out.
"We are going into the peak this year rather than before the crisis due to favourable exchange rates and market changes," said Mr. Sedgewick.
Some property analysts also expect that demand for London properties will remain strong in the coming weeks. They predicted that many investors will purchase London properties in anticipation that the Pound may strengthen despite the forthcoming general election.
Property dealers said that among the units bought by Singapore investors are projects located in East London.
Mr. Richard Lowe, team manager of international sales at HSR, said that buyers prefer the area because it "is going through a major revamp."
A recently launched project in East London known as "Discover" saw its 135 units sold out last month, said Mr. Lowe. The two-room units at the project were sold at between 139,950 pounds and 159,500 pounds.