Oct 21, 2011

Singapore - Four best places to invest your real estate dollars



According to a recent survey by Global Property Guide, Singapore has the best performing property market in the world, followed by Hong Kong and Australia.

Singapore recorded a 34 per cent year-on-year increase for house prices starting from the second quarter of 2009 and ending in the first half of 2010, followed by Hong Kong at 21.42 per cent and Australia at 14.85 per cent.

On the other end of the spectrum, Bulgaria, Lithuania and Iceland were the bottom three, recording price decreases of 10.25 per cent, 15.70 per cent and 15.85 per cent respectively.

In Southeast Asia, Indonesia, Thailand and the Philippines were the bottom three, recording price drops of 1.42 per cent, 4.83 per cent and 4.85 per cent respectively.

With the Lion City taking top spot in Asia and the world, it is almost impossible to single out other hot real estate destinations unless we single out each city’s unique characteristics that make it so attractive.

With so much uncertainty in the US and Europe, our top picks remain in the Asia Pacific. Below are our choices for hot overseas investment destinations:

Melbourne

Melbourne recently clinched the title of the world's most liveable city in the Economist Intelligence Unit's latest survey.

Boasting a thriving arts and entertainment scene, top notch universities and a centre for sports and tourism, Melbourne’s property market has seen substantial international investments in popular districts such as Southbank, Port Melbourne, Melbourne Dockland and the new hot spot, South Wharf.

Melbourne also has the best performing economy in the whole of Australia and survived the Lehman Brothers’ crisis better than other states.

For a great quality of life and work-life balance, Melbourne is our top pick.

Iskandar Malaysia

Located just across the causeway, Iskandar Malaysia is set to experience the spill-over effects of Singapore’s red hot property market once the new rail network connects the Tuas MRT extension to Legoland Malaysia, the Johor CBD, and back to the new MRT regional interchange in Woodlands by 2018.

Supported by various catalytic industries such as tourism, multimedia, education, wellness and an Islamic finance hub, Iskandar Malaysia could prove to be attractive to investors who like its close proximity to Singapore but are turned off by the city-state’s high property prices and fast pace of life.

Its plus points include its Master Plan from a greenfield to a city of the future.

However, Iskandar Malaysia has yet to show any track record in capital appreciation and rental yield, unlike Kuala Lumpur.

Still, it is a market to watch now that Temasek Holdings and Khazanah Nasional Berhad will be jointly developing an iconic wellness centre there.

Penang

Like Singapore, high-end properties in Penang have shown good capital appreciation due to scarcity of land.

It also helps that George Town has been named a UNESCO World Heritage Site due to its unique Peranakan shop houses and colonial buildings that still stand today.

Other plus points include its lower cost of living, scrumptious hawker fare and laid back living that has drawn investors who see it as a good retirement destination.

However, infrastructure and transportation need to be improved, while Batu Ferringhi beach has to be cleaned up since its beaches are always so hyped up.

Otherwise, Penang feels like a home away from home.

Krabi

Forget Phuket! Krabi is the hot new investment destination that has attracted about 2 million baht in investment in new services and hospitality.

With a new marina set to rival Phuket, non-stop direct flights courtesy of Krabi Airline and a new convention centre, Krabi’s tourism industry is set to take off.

In addition, it is a family-friendly destination with a less seedy image compared to Phuket.

Other draws include low cost of living, great local cuisine and sizeable Buddhist and Muslim communities who live in harmony with one another.

While Phuket has been overdeveloped, Krabi has plenty of room for economic growth, capital appreciation and rental yield – but only for luxury landed homes and villas.

Steve Melhuish



Business & Investment Opportunities
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