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Thread: MAS warns on foreign property investment

  1. #1
    Blue blood princess_morbucks's Avatar
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    Default MAS warns on foreign property investment

    SINGAPORE - Singapore's central bank has issued a warning to investors about the risks posed by buying property overseas, as high house prices at home prompt a growing number of its residents to invest in real estate abroad.

    A strong Singapore dollar and curbs on mortgage lending at home have encouraged more Singaporeans to buy property in the likes of Britain and Australia, with the Monetary Authority of Singapore (MAS) reporting a 43 per cent rise in the value of overseas property transactions handled by local real estate agencies in 2013 compared with 2012.

    MAS said in a statement that it is monitoring developments closely to ensure financial stability and that investors do not over-extend themselves. "Risks are more difficult to assess or manage when investors are unfamiliar with conditions in overseas markets, such as the prospects for oversupply of properties, or of a deterioration in economic conditions," MAS said.

    It also flagged the foreign exchange risk of borrowing in one currency but collecting rent in another.

    MAS said the value of overseas properties dealt with by Singapore real estate agencies was S$2 billion ($1.6 billion) in 2013, up from S$1.4 billion in 2012.

    A recent research report by estate agent Knight Frank found that buyers from Singapore accounted for 23 per cent of all purchases of newly built central London property in 2013, second only to British buyers who accounted for 27 per cent.
    - See more at: http://business.asiaone.com/news/sin....9qTK1kCK.dpuf

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    Scared money all flow out...

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    Senior Arcachon's Avatar
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    What can go wrong when SC brought oversea property.

    1. They brought with SGD loan or Oversea loan.
    2. When the property crash, how much they lose.

    The problem is when they use SGD loan.

    If they use oversea loan, when the property crash just give the property to the oversea bank.

    I try borrowing from BNP bank to buy France property, the banker ask me whether I think of the event when I can't pay the mortgage. I told him the bank can have the property. His face turn white although he is a white man.

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    http://list.juwai.com/where-chinese-buyers-are-looking

    This is the first comprehensive portrait of Chinese buyers of international property to be based on measurements of their actual behavior. It reveals the truly global scale of property investment by individual Chinese into other countries.

    Sixty-three million Chinese have sufficient wealth to purchase international property, including 2.8 million high-net-worth individuals. Over 60% of these high-net-worth Chinese are already engaged in overseas investment, immigration or education.

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