Exchange Rates Make Overseas Property Cheaper for Singapore and Hong Kong Investors

There are now some fantastic property bargains to be had in the UK, Australia, New Zealand, USA and dozens of other popular destinations with weak currency.

The exchange rate between currencies can have a major impact on the final cost of an overseas property purchase. Clever application of exchange and interest rates on overseas property purchase can land Singaporeans and Hong Kongers with significant savings. Not only are rates favorable now but falling housing prices across traditional popular property markets have accumulated into a saving crescendo that can add up to at least 45 percent less in purchase price compared to only 6 months ago.

However, most analysts would have you believe housing prices are set to fall even further. The question is do you wait for the free fall to hit solid grounds or do you take advantage now of the remarkable favorable exchange rates, interest rates and lower housing prices? For the smart Asian investor with a holistic perspective there has never been a better time to buy then now. Many of the mature market currency are now significantly weak to the Singaporean and Hong Kong dollar. This translates to huge savings. But investors have to act fast as the property market has a habit of appreciating in value very quickly too.

These reasons to invest now are compelling, which is why the organizer of the SMART Investment & International Property Expos, Corporate Consumer Communications Ltd, is braving the market storm to bring the only large scale and internationally recognized expo of its kind to Asia in the first quarter of 2009.

Investors looking to take advantage of the current market situation will be able to connect to professional advice and source hundreds of attractively priced properties all under SMART Expo roof. SMART Investment and International Property Expo will be held in Singapore and Hong Kong from the 28 – 29 March 2009 and 27 – 28 June 2009 respectively, full details can be found at www.smartexpos.com.

Factors that Make Overseas Property Attractive
More than ever, given the state of the currency and housing markets there are some fantastic property bargains to be had as the following examples illustrates.

Factor 1 - Dropping Housing Prices

• Australia: Preliminary estimates show the price index for established houses for the weighted average of the eight capital cities decreased 1.8% in the September quarter 2008.
• New Zealand: Property prices in New Zealand fell overall by 4% in 2008
• Malaysia: Property prices is expected to fall by 5-10 percent in the first quarter this year
• UK: Prices have now fallen 18% from their peak in October 2007. They were down a massive 2.5% in December 2008 alone

Factor 2 - Exchange Rate Differences
Good currency exchange transactions are key to significant savings when purchasing overseas property investment. For example:

In January 2008, 1HKD = 0.065GBP
Converting HK$1 million dollars to GBP would yield GBP65, 000.00.

In January 2009, 1HKD = 0.086GBP
Converting HK$1million to GBP would yield GBP86, 000.00

Most UK property buyers in Hong Kong and Singapore are therefore able to benefit from the pound’s weakness and can be better off by GBP21, 000.00 in cash for every HK$1 million transaction.

The same principal can be applied to Australia, another popular destination for Asians looking to invest or move abroad. In recent months, both the Australian dollar and pound Sterling plummeted in value against the Singapore and Hong Kong dollar. Investors looking to make a property purchase will now greatly benefit from the massive movements in exchange rate changing, making overseas property cheaper.

In October 2008 the differences where staggering – a UK property costing £143,000 in September dropped to only £118,000 in just 6 weeks later. Cost saving can also be had for Australian property as against the Hong Kong dollar, the Australian dollar depreciated by a massive 37% in the same timescale.

There are similar findings for other popular destinations such as Thailand. In January 2008, HK$1 million exchanged for 3.8M Baht compared to 4.5M Baht in Jan 2009.  You do the math!

With so many popular top investment destinations’ currencies trading at lowest rate for years against the Singapore and Hong Kong dollar, this present overseas property buyers with the opportunity for a bargain.

Factor 3 - Interest Rates
In response to the crisis, many central banks have been rushing to drop interest rates making the cost of borrowing much cheaper.

• 29th October 2008, interest rates were cut to 1% after a series of cuts from 5.25% in September 2007
• 31st October 2008, Japan cut rates to 0.3%
• 2nd December 2008, Australia cut its rate to 4.25%, its fourth cut in four months
• 4th December 2008, the EU, UK and New Zealand all slashed their interest rates – to 2.5%, 2%, 2% and 5% respectively

By taking into market factors such as exchange and interest rates as well as falling property prices there are still great opportunities amongst the doom and groom. But opportunities do not last forever. Property developers and agents looking for an effective channel to tap into savvy property investors in Singapore and Hong Kong should not miss the chance to be part of Asia’s longest established expo of its kind for 2009.

The SMART Expo boasts a foundation of buyers in excess of 60,000. These savvy investors are primed to the opportunities and are aware of the importance of good foreign exchange transactions when dealing with the large sums involved in property investment abroad, low interest rates and falling housing prices. The time is now for bargain hunters to take advantage of all these factors. Don’t miss your opportunity to meet them. Join the SMART Expos 2009!

For inquiries please contact:
Marcus Wong, tel +852 3575 8008, email mwong@3c-ltd.com
SMART Expo – www.smartexpos.com