Monday, June 18, 2012

Singapore buyers go back to school

EXCLUSIVE: Sales of U.K. student accommodation property investments have been on the rise in Singapore, with possibly as many as 100 transactions involving this property asset class happening in the city state every month.

Kevin Caldwell, property consultant with Singapore-based agency Premiere Realty, told PropertyGuru: “This type of property investment is fairly new for individual investors, although institutions have been investing for quite a while. During the last 12 months individuals have been able to invest more easily because longer leases have been made available.”

Caldwell added that rental yields are the main attraction for Singapore investors who are buying this particular investment, although he was keen to point out the risks involved.

“The resale market for this type of investment is untested, and buyers need to check that their intended investment actually has planning permission. Not all do,” he cautioned.

Last weekend alone student property investments in Liverpool and Birmingham were being exhibited in Singapore, joining the likes of projects in Bolton, Sheffield, Leeds, Bradford and Nottingham that have already been pitching to property investors in Southeast Asia this year.

Caldwell added that he expects to see more student property investments being touted to Singaporeans, where demand for high yielding property investments is high. His company has been marketing The Pavilion in Liverpool, which promises a guaranteed net yield of 7.25 percent for the first two years. The purchase price for furnished units at this development is £48,285 (S$99,000). Other U.K. student accommodation developments have been offering similar prices to Singaporean buyers.

Knight Frank, in its recent report on the Student Property sector in the U.K., noted: “Student property has outperformed every other commercial property class.” This comes as a result of a record number of applications to universities and colleges during 2011.

View the original article here

Source From Property Guru

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