Singaporeans’ appetite for overseas property purchases crashed to 3-year low in 2014

Investors are turning back to Singapore.

Singaporeans are now less keen on buying overseas property on back of improved consumer sentiment towards the local property market.

PropertyGuru’s Property Affordability Sentiment Index showed that purchase intent for overseas properties continued to see a downward trend with the lowest level of purchase intent recorded since 2011.

Only 16% of respondents were interested in purchasing overseas property at the end of 2014.

Affordable prices and good capital appreciation were cited as the top reasons to purchase overseas property. Australia overtook incumbent Malaysia as the top destination of choice for overseas property buyers.

Meanwhile, more respondents rated the Singapore property market as becoming increasingly affordable, with a score of 168 in the second half of last year - well above the base level of 100. 

“Our survey respondents, which included both Singaporeans and Permanent Residents, show increasing optimism in the market. 43% of respondents intend to purchase a property within the first half of 2015 despite a bearish real estate climate. This figure represents a great improvement in consumer sentiment against the previous years,” said Steve Melhuish, Co-Founder and Chief Executive Officer of PropertyGuru.