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SG Caution urged over buying overseas properties

Property Here - Tuesday, July 30, 2013

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Banking on Singaporeans' strong interest for property, foreign developers are actively promoting their projects here in the hopes of boosting sales, but analysts are reminding buyers to be cautious.

At a recent property showcase at the Singapore Expo, several overseas projects and land sites in south Indian cities like Chennai and Hyderabad were exhibited to provide local buyers with diverse property investment opportunities, media reports said. 

For instance, the Kgeyes Eternity condominium development (pictured) in Chennai sold two units with sizes of 1,182 sq ft and 1,466 sq ft at an average price of S$319 psf. 

While some overseas investments provide good returns, analysts are urging buyers to think hard before making purchases, taking into account the property rules of other countries as well as specific details of the property.

Buyers also need to be wary of gimmicks offering steep discounts, low down payment options and rental guarantees.

“While buyers think that these are real bargains, most of the time the costs have already been imputed into the property price,” said Ku Swee Yong, Chief Executive at International Property Advisor.

“If the city is a secondary, non-emerging area in the country, tenants are likely to be foreigners who work in that city and would be able to afford rentals far from main city locations,” said R'ST Research Director Ong Kah Seng. “If the property is rented to different parties on very short, random and ad hoc leases such as holiday homes, chances are the property will be subjected to more wear and tear as well as maintenance fees over time,” he added. 



Nikki De Guzman
, Junior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email nikki@allproperty.com.sg