Follow the smart dollars they say – One of the main reasons why private equity, funds and the global wealthiest are still buying buildings and real estate here.
Singapore properties will almost always result in nett positive returns for foreigners over the mid-long term – SGD has a clear history of appreciation against the world’s major currencies over time (10yrs Vs USD, JPY, GBP, AUD, EUR etc). Not to mention against our neighbours in the north and south. And we can witness similar currency strengthening measures in another small country in Europe that has similar geographic and economic conditions as us, which attracts the global elite too – Switzerland.
It is crucial to the survival of our nation given how much we rely on imports. From water, food, raw ingredients, oil to talent & manpower. Hence, the Singapore Dollar can hardly weaken over the long run given our resource limitations.
Understanding your odds through forex trends will greatly help you decide whether the overseas property you invest in will fare well when you finally convert your profits back to Sing Dollars.
So begs the question, when will investors start returning to SG properties? Looking at the transaction volume in the 1st quarter of 2016, it is clear to me that investors have returned in trickles and many more on the prowl and ready to pounce on the next genuinely undervalued property that surfaces.