Singaporeans invested almost US$12 billion in international property in 2014 reports CBRE
Property investors in Singapore have cast their gaze outward in recent years, buying so much property around the globe that they have earned Singapore the position of being Asia’s largest source of outbound investment in real estate for the second year in a row.
Research by CBRE has shown that Singapore invested some US$11.9 billion in international property during 2014 – a considerable increase from the US$9.4 billion invested in 2013. Overall, Asian outbound investment for 2014 reached a record US$40 billion, up 23% from the year before
One of the key places to capture Singaporeans’ attention when it comes to overseas real estate investment is Brazil, as Ritz-G5’s Managing Director in Asia, Arun Rama, explains,
“Singaporean investors are looking for strong investment opportunities with short investment periods and clear and defined exit strategies. Brazil offers all of that right now, along with yields that beat almost anything available in Singapore itself.”
Healthy returns are a key draw. With bank interest at less than 1%, insurance interest at less than 3% and an inflation rate between 3 and 5%, it is easy to see why Singaporeans have turned to investment in Brazil to make their money work for them.
In Brazil, according to figures from Trading Economics, the interest rate averaged 15.75% between 1999 and 2015. Meanwhile, according to Fitch, Brazilian insurance market penetration stood at 4.2% as of June 2014, with Lloyds figures showing it as 4% during 2013. In terms of inflation, Brazil’s rate reached 7.7% as at February 2015.
Many Singaporean real estate investors are also enjoying the ability to take loans in foreign currencies, taking advantage of favourable FX rates in order to maximise their profits. The lure of the Americas is proving strong. The US$8.9 billion invested there from Asia in 2014 represented a 20% year on year increase.
The future of Singaporean investment in Brazilian real estate certainly looks to be exciting, as Ritz-G5’s Arun Rama continues,
“Ritz-G5 is already enjoying considerable success, having represented the cream of industry excellence since the Brazil offices were established in 2008. Two of the company’s most exciting developments have particularly caught the attention of Singaporean investors – Palm Springs and Majestic Village.”
Palm Springs is one of the most exclusive beachside condominium developments in Natal, with lush landscaping and spectacular beach and ocean views. Majestic Village is a sought after serviced land plot development spread over 75 hectares in one of Natal’s most up and coming areas, Parnamirim.
“Brazil offers investment opportunities with low capital outlay, title ownership and the ability to take advantage of the strength of the Singapore dollar. We’ve seen investment there from Singaporeans ramp up significantly over the past couple of years as investible assets in their home market have run short and this looks set to continue over the years ahead as well.”
For more information on Ritz-G5 or investing in Palm Springs Natal, contact the team on +44 207 183 7565 or visit www.ritz-G5.com.