The relative strength of the Singapore dollar comes at a time when the London and UK residential property markets are showing sharp price corrections following the wider global economic slow-down. This means that Singaporean and S.E. Asian investors are currently very well placed to make investments ahead of the predicted medium term recovery of the UK housing market.
James Thomas, Director of Residential at Jones Lang LaSalle comments, "The current weakness of £ Sterling is considerably enhancing the attractiveness of the UK residential market to $ Dollar denominated overseas purchasers. This currency advantage comes at a time when the UK residential market remains weak following the faltering of the UK economy."
"We do however anticipate a strong medium-term house price recovery, led by London, from 2010 creating a window of opportunity for would-be investors in the intervening period whilst market sentiment remains weak."
Since December 2007, the Singaporean Dollar has strengthened by around 25% in relation to Sterling (12 months back it was SGD $3.2 to £1 and today it stands at SGD $2.07 to £1). This currency advantage is further enhanced by the reduction in prices in central London by around 15% during 2008, giving a saving to investors in nominal terms of around 40%.
Julian Sedgwick, Director of Residential Investments at Jones Lang LaSalle Singapore comments, "In the last few months we have received more and more enquiries on when is the best time to buy in London. Singaporean investors are beginning, for the first time in a long while, to see value in London and are keen to invest in the city. Clients range from the stand alone investor, to local funds and wealthy individuals who are now looking to invest sums into the residential market."
"We’ve recently sold a 2 bed river front apartment in Imperial Wharf, Fulham, as an investment to a client of ours residing in Singapore. When comparing exchange rates from 12 months ago our client saved around 25% just by the weakening of the pound."
