Strong Sing dollar boosts foreign property investment
Mar 18, 2011 - PropertyGuru.com.sg
Wealthy Singaporeans are always on the lookout for ways to expand their real estate investment portfolios in the West, taking advantage of the strong Singapore dollar, according to the TODAY newspaper.
The Singapore dollar has significantly increased since Lehman Brothers’ bankruptcy in September 2008 — 11 percent versus the US dollar, 25 percent against the British pound and 14 percent versus the Euro.
Many foreign real estate markets in cities such as New York have experienced a decline in prices, making them attractive compared to Singapore, where prices have increased sharply in the past two years.
Another famous investment spot is London. “London is still deemed as an aspirational city by the world’s wealthiest, richest families and as an investment target or city, it is really quite attractive because of its stability,” said Ms. Phang Lah Hwa, Head of Consumer Secured Lending at OCBC Bank.
In August 2010, OCBC responded to requests from its wealthy customers to take out either Singapore-dollar or pound-denominated loans on London real estate.
The bank plans to provide similar schemes for real estate markets in Australia and the United States in the near future.