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Singapore Buyers Desert London As Mortgage Rules Hit Home


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HOLA441

http://www.bloomberg.com/news/articles/2015-06-20/singapore-buyers-desert-london-as-mortgage-rules-hit-home

Singapore investors are buying fewer mansions in London after mortgage changes in the island nation limit their ability to borrow.

The number of Singaporean’s buying prime homes in the capital fell 74 percent in the period from November to the end of May compared with the previous six months, according to broker Knight Frank LLP. They now make up 1.7 percent of all buyers in the city’s best districts, down from 3.8 percent in the prior period, the broker said.

Homebuying from “Singapore is very low at the moment and falling off,” Rob Perrins, managing director of Berkeley Group Holdings, said in an interview June 17. Investors from the city state were the biggest overseas buyers of new homes constructed by Berkeley, London’s largest homebuilder, in 2013, Perrins said.

Singapore’s government capped borrowers’ total debt repayments at 60 percent of monthly income in June 2013 as it sought to prevent a property bubble in Asia’s second-most expensive housing market. That made it harder to purchase homes overseas as international borrowings are included in the cap.

An interesting move, does anyone know how this works because if interest rates went up I can imagine as a borrow on the limit you could easily venture into the 60+ side.

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HOLA4410

Still the blase expectation of interest rate rises.

Enough already. There won't be any, bar maybe the odd face save which will be reversed quickly.

#TurningJapanese

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So, which foreign investors are still buying London? The Chinese? The Russians? The Arabs? The Americans? Seriously?

Fewer and fewer - LR £2m+ sales down 34% y on y... (to Feb 15)

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