The property market in Singapore continues to be red hot as more developments get launched and speculators continue to buy.

But a new trend is emerging in this market, and that lies in foreign investment funds buying up blocks of property in Singapore.

We saw just the other day the sale of two blocks at Reflections at Keppel Bay - a development by Keppel Land- get gobbled up by a recently established fund backed by the Kuwait Finance House and Amanah Raya in Malaysia.

This I think is the beginning of a trend that we will see continue here in the Singapore property sector. Big listed property developers will sell off chunks of developments to foreign holders and take the profits at higher margins straight away.

Not only will the property funds that are investing in Singapore be from overseas, but more and more will increasingly come from the Middle East and places such as Kuwait, Dubai, and Qatar.

And if that keeps up, I think then the prospect of the property bubble bursting anytime soon goes down significantly only prolonging the streak of rising prices in this ridiculously overpriced property market in Singapore.

Curtis Bergh

Labels: Foreign Property Funds, Property Market, Singapore, Singapore Property