Singaporean Real Estate Investors

Singaporean real estate investors are always scouting out for overseas properties. This growing trend began in as early as 1981 with the creation of GIC (Government Investment Corporation) which is the government’s chief investment arm that is tasked with investing Singapore’s foreign reserves to earn reasonable returns within acceptable risk limits. GIC ranks amongst the world’s largest investment management organizations with assets in excess of US$100 billion spread out in 40 countries.

Singaporean Real Estate Investors Seek to expand on Foreign Soil

Singapore-Jiangsu Deals

In the latest news, Singapore companies are expanding their commercial and economic ties with yet another province in China. The Singapore-Jiangsu Cooperation Council meeting that was held here yesterday saw the signing of 20 mutually beneficial deals amounting to about US$2 billion. As has been the case whenever such deals are agreed upon, Singaporean businesses are spearheaded by the government to build and develop special business parks that provide an added area of investment that expands the scope of Singapore’s economy.

As China’s economy is projected to contract but still see single digit growth in the immediate years ahead, the signing of these deals is indeed timely as the world enters a recession. Regardless the nature of these 20 businesses, land shall be acquired and buildings shall sprout up despite the global economic uncertainty. Jiangsu has a total of 87 Singaporean investments worth about US1.3 billion to date, with many more Singaporean companies showing keen interest in the outcome of such investments.

Real Estate Trend in Singapore

There are 5 categories of real estate investors in Singapore : GIC (government), semi-goverment companies (with 51% government stake), MNCs (Multi-National Corporations) based in Singapore, SMEs (Small and Medium Sized Companies) and private individuals. As land is limited in Singapore, many local and locally based real estate investors have a propensity for acquiring foreign real estate especially in properties of countries seen with high growth potential.

In this region, China has traditionally been considered as having the highest growth potential with a track record of annual double digit growth. Owing to the scarcity of land in Singapore, it is only logical that local businesses and individuals look beyond national borders to avidly seek out promising real estate value.

A New Trend in Real Estate?

Embolden by the ever growing possibility of dual and multiple citizenship due to rapidly evolving globalization, affluent individuals are increasingly talking about buying mansions, villas, ranches and even wineries in foreign countries as a second home for themselves when it’s time to retire. Singapore’s strict policy of single citizenship in the past had seen many an entrepreneur leave its hallowed shores for a life of retirement overseas. And with this trend showing no signs of abating, who knows how long the existing citizenship policy will remain unamended.