Overseas property assets still lure Singaporean investors

Australia remains a prime target.

Real estate investors in Singapore are still looking to pour funds into overseas property acquisitions, according to the latest Asia Pacific Investor Intentions Survey 2016 by CBRE.

CBRE noted that overall buying intentions among Asia Pacific real estate investors remain positive with around 80% of survey respondents indicating they plan to buy at a similar level to, or more than 2015.

Although only 42% of respondents said that they intend to increase purchasing activity in 2016—lower compared to 54 per cent in 2015 and 64 per cent in 2014—the majority of investors still expect to buy more than they sell.

Australian assets remain attractive to Singaporean investors in particular. South Korean investors retained the most positive attitude towards outbound investment, followed by Singaporeans.

Foreign investors are also drawn to assets in Southeast Asia. 20 per cent of cross border investors polled expressed interest to buy assets in the region, particularly in Singapore and Vietnam, compared with 17% in 2015.

Residential projects, in particular multi family and assets with lease potential, are deemed to be the most attractive for cross border investors keen on Southeast Asia.

The same investors have also indicated a preference for student housing (28 per cent), followed by real estate debt (17 per cent) in terms of alternative assets they are actively pursuing.