Unlocking Asia: Why Singapore Property Investors are Going Beyond Borders

Buy Sell Rent SG // October 11 // 0 Comments

Have you ever heard of people investing money to make more money? One of the ways they do this is by buying properties like houses and apartments and then either selling them at a higher price or renting them out. This process is like planting a seed, taking care of it, and then selling the fruits later for a profit.

Many people in Singapore are looking at other Asian countries to buy properties because they believe they can make more money there. But why is this happening? Let’s dive into it.

Why Are Singapore Investors Looking Elsewhere?

In Singapore, the profit or “yield” (think of this like the fruit of a plant) from these properties has been between 1% and 3%. If they invested $100, they might get back $101 to $103 in a year. But in other nearby Asian countries, they can get more! For instance:

  • They could return $108 from their $100 investment in Jakarta, Indonesia.
  • In Bangkok, Thailand, it’s between $105.50 and $106.
  • In Ho Chi Minh City and Hanoi, Vietnam, they can get between $104 and $105.
  • Manila in the Philippines gives a little less, around $102.50 to $103.

But What Does “Net Yields” Mean?

When we talk about yields, we specifically mention “net yields”. This is a fancy term that means how much money you make in a year from renting out a property after paying maintenance, taxes, and other costs. Think of it as the clean profit after you’ve paid all the bills.

Why is Japan’s Property Market Becoming Popular?

Another exciting thing happening right now is in Japan. Even though its currency, the yen, isn’t as strong as before and its banks offer very low-interest rates, Singaporeans, especially the richer ones, buy more properties there. Why? These factors can make buying a house or an apartment in Japan cheaper and more beneficial in the long run.

Nicholas Keong, a big expert from Knight Frank, says many wealthy Singaporean families are noticing this and investing more in Japanese properties.

FAQ (Frequently Asked Questions)

What are yields?

Yields are like the fruits you get from an investment. It’s the profit you make after you’ve paid all the necessary costs.

Why are yields in Singapore lower than in other Asian countries?

The property market in Singapore is more stable and mature, so the profits are not as high as in emerging markets like Indonesia and Thailand.

How are yields calculated?

Yields, especially net yields, are calculated by taking the total annual money you get from renting out a property, subtracting the costs like taxes and maintenance, and then dividing by the market value of the property.

Why are Singaporeans investing in Japan?

Japanese real estate has become attractive because of the weaker yen and low interest rates. This makes it cheaper and potentially more profitable for Singaporean investors.

What do interest rates have to do with buying properties?

Interest rates can determine how much it costs to borrow money. When rates are low, like in Japan right now, it can be cheaper to get a loan and buy a property.

Wrap-up

In simple terms, many Singaporeans are exploring property investments in different Asian countries because they see an opportunity to make more money. It’s like finding a field where the fruits grow bigger and juicier than the ones you’re used to. Countries like Indonesia, Thailand, Vietnam, and Japan look pretty juicy for these investors!

Investing in properties can be smart, but it’s essential to research and understand the market before diving in. If you’re ever interested, maybe one day, you can be an investor too!

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