Singapore property investors confident and increasingly looking abroad

Almost half of property buyers interested in investing in Singapore expect prices to increase and regard the market as an attractive investment, according to a new survey.

The Asia Property Trends Survey 2008 from iProperty.com also found that 42% expect prices to decrease but they still regard it as a good investment because of the potential longer term capital appreciation.

The recent stabilisation of property prices is encouraging more investors and 85% of those surveyed said that they may purchase property within the next 12 months.

Attractive loan packages are also encouraging investors, it found. A majority, 73%, said they would be looking for 60 to 99% finance to buy.

Residential properties are the most sought over by investors, especially completed apartments and property with land.

They are divided in half over buying for personal use or investment with 46% buying to live in the property and 48% wanting to buy purely as an investment.

Location came out as the prime consideration followed by price and potential rental yields. Few would buy a property without seeing it first.

There is also a decrease in the number of property investors buying in Singapore with only 54% said they would purchase a property from the domestic market.

'This is a significant fall from last year when 78% regarded local property as their prime interest,' said a company spokesman. 'This implies that overseas property investments are becoming increasingly attractive to Singapore property hunters,' he added.