London property bubble? Singapore investors unfazed

[CityFarmer]

A quote from the article below

"...overseas buyers accounted for nearly three-quarters of new home purchases in central London last year, with more than half the homes sold to buyers from Singapore, Hong Kong, China and Malaysia."

Doesn't it sound risky...?

London property bubble? Singapore investors unfazed

SINGAPORE — Fears have emerged that a bubble has formed in the London property market after prices rose to levels not seen since before the global financial crisis, but that is not deterring Singaporean investors who are attracted by the city’s global appeal and a favourable exchange rate.

Official data released last week showed that London house prices rose by 8.1 per cent in a year to record highs, pushing the average cost of a home in June to £425,000 (S$845,000).

Part of the reason for the sharp increase is that foreign investors have been piling into the market: According to a recent report in the Financial Times, overseas buyers accounted for nearly three-quarters of new home purchases in central London last year, with more than half the homes sold to buyers from Singapore, Hong Kong, China and Malaysia.

That demand is set to continue even though warnings have started to emerge that a bubble may have formed, said OrangeTee’s Head of International Projects, Mr Jonny Chng.

http://www.todayonline.com/business/lond...rs-unfazed

[BlueKelah]

its the overflow of funds from china's property bubble. a lot of chinese trying to shift money away from china through various "investment" methods.

Seems that so far they are able to convince people all around the world that property will only go up and never down

[specuvestor]

Not difficult to understand why Singaporeans unfazed when we look at Yeokiwi's chart

http://www.valuebuddies.com/thread-8-pos...l#pid59043

[CityFarmer]

GIC is also part of the buying spree on London properties, albeit un-confirmed...

GIC buys stake in London financial district complex for reported S$3.4b

SINGAPORE — GIC is the buyer of Blackstone’s stake in London’s Broadgate office complex, according to two sources with knowledge of the transaction.

GIC — formerly known as the Government of Singapore Investment Corporation — is buying 50 per cent of Broadgate, a cluster of 16 office buildings, shops and restaurants on 12 hectares in London’s main financial district, according to the sources, who asked not to be named because the deal is private. Bloomberg reported two days ago that Blackstone agreed to sell the stake for more than £1.7 billion (S$3.4 billion).

PropertyWeek.com also reported yesterday that the fund was the buyer. Spokesmen for GIC and Blackstone declined to comment on the transaction.

http://www.todayonline.com/singapore/gic...orted-s34b