With the bleak outlook on local property prices, more local investors are eyeing offshore properties, said industry watchers and real estate agents.
According to a PropertyGuru survey, 19 percent of over 1,737 respondents polled were “tempted” to invest overseas, up from 14 percent in June.
The poll — conducted before the government’s recent cooling measures — also cited that Malaysia was the top overseas investment destination, with 32 percent interested, followed by Australia with 24 percent, while the Philippines and New Zealand both landed in third spot with nine percent.
As the residential market in Singapore is expected to slow, PropertyGuru also expects the number of foreign and local investors looking overseas to increase in the next six months.
Malaysia-based developer Eastern & Oriental noted a 20 percent increase in inquiries from Singaporean home hunters about its Penang projects.
Analysts believe that the cooling measures have taken some of the heat out of the luxury residential market and this will likely continue next year, as investors turn to opportunities in Western markets. This could affect demand for luxury homes in Singapore, Beijing, Hong Kong and Shanghai, where prices have risen by approximately 25 percent in recent years.
“While we saw very strong activity by high-net-worth investors, particularly from the Asia-Pacific region…the course might change in the next 12 months, where we see more outflow in terms of money going into markets like in Europe, in key markets in the US, by high-net-worth Asian investors,” said Donald Han, Vice-Chairman of Cushman & Wakefield.