SINGAPORE: More of Singapore’s affluent are looking to buy properties in global cities like London, to take advantage of the strengthening Singapore dollar which has gained against overseas currencies such as the UK pound, said bankers.
The Singapore dollar has risen more than 25 per cent against the British pound since the collaspe of Lehman Brothers in September 2008.
In August 2010, local bank OCBC allowed its high-net worth customers to take out Sing dollar- or pound-denominated loans on London property.
OCBC said loan volumes for London homes doubled in the last quarter of 2010, compared with the first three months after the launch of the financing scheme.
The bank will also roll out similar schemes for property markets in Australia and the US.
“London is still deemed as an aspirational city, by the world’s wealthiest, richest families and as an investment target or city it is really quite attractive because of its stability,” said Ms Phang Lah Hwa, head of Consumer Secured Lending at OCBC Bank.
“As investment target or city it is really quite attractive because of its stability”, added Ms Phang.
Source – CNA/cc/wk