Singapore Emerging As Regional Force In Property Investment

by Phillip Morton, Investors Offshore.com

23 September 2004

Singapore is emerging as a genuine player in the real estate finance market that is developing across Asia-Pacific, according to a recently released report by Standard & Poor's Ratings Services.

The report, entitled 'Securitizing Real Estate in Asia: Is Singapore a Prelude of Things to Come?' notes that Singapore, with over US$1 billion in capital raised since 2002, is increasingly seen as a factor in the region’s REIT and securitized real estate market arena.

The report also points out how Singapore’s many other advantages including location, a highly skilled and educated workforce, it’s 'AAA' sovereign rating, and clear legal system are also standing the city-state in good stead within the international real estate market.

"The marriage of these factors with relevant tax benefits is making Singapore the preferred location to list shares for many regional real estate owners," observed Gale Scott, a managing director in Standard & Poor's Structured Finance group.

According to S&P, Singapore has emerged as an inviting market for local and regional REITs and CMBS issuers with pressures from investors and regulators driving the market toward international valuation, governance, and transparency standards.

Clayton Hunt, a managing director in Standard & Poor's Structured Finance group noted: "All of these factors should help ensure that a robust marketplace continues to develop, providing ever-greater opportunities for both the issuer/owner and investment community."

"The question is whether these developments will flow out of Singapore to other Asian markets," he mooted.

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