News reports earlier this month identifying Singapore-based buyers as the leading overseas buyers of luxury residential property in Dublin. Ireland, raised eyebrows with a number of market watchers.
Knight Frank, in its European Cities Review research report, also noted that Singapore buyers are the second most prolific buyers of luxury residential property in Paris and third in London.
Malaysians were also ranked as the third leading overseas buying nation in Dublin, according to Knight Frank.
Responding to questions from PropertyGuru, John Ring, Investment Analyst, Investments & Asset Receivership, Knight Frank Ireland, said that the ranking of Singapore in first position and Malaysia in third position reflects what Knight Frank residential agents have experienced on the ground in Dublin.
He highlighted three factors:
“The Irish market is not prone to international residential capital flows like London; the Irish market is being dominated by domestic buyers who account for 75 percent of the total residential purchases.
“The majority of the 25 percent of foreign buyers are Irish expatriates who have built up a level of wealth in places like Australia and Asia during the recession in Europe. They now see an excellent time to buy into the prime residential property cycle in Ireland with a view to occupying the property upon return. “Transaction volumes are still suppressed in the already thin prime market due to a lack of supply which leaves room for volatile results, as correctly pointed out by PropertyGuru.”
Ring added that, having said that, the emergence of Asian investors on the Irish property investment landscape is unmistakable and spreads across asset classes.
There are two primary reasons for this, he said.
“The first is part of the wider global trend of greater capital flows from Asia to Europe which has been predominantly focused on London, but with some of this money finding its way to Dublin. This is primarily due to its proximity to London and also because it is an English speaking country which facilitates ease of doing business.
“More importantly, Ireland has always enjoyed very strong educational links with Singapore and Malaysia,particularly in medicine, which creates the dual effect of creating an investment rationale for those sending children to study here while also facilitating a transfer of knowledge of the economy in those that return home having studied here.”
Ring concluded by saying that Ireland’s prime residential market is supported by a very compelling investment case with values still little over half of what they were in 2008, despite having increased by almost 20 percent in 2013.
“When one considers this in the context of a strengthening economy and favourable demographic trends, there is a lot of up-side potential in the prime residential market,” he said.
Photo: Residential property in Monkstown, Dublin; Savills
Story: Andrew Batt via PropertyGuru
News reports earlier this month identifying Singapore-based buyers as the leading overseas buyers of luxury residential property in Dublin. Ireland, raised eyebrows with a number of market watchers.
Knight Frank, in its European Cities Review research report, also noted that Singapore buyers are the second most prolific buyers of luxury residential property in Paris and third in London.
Malaysians were also ranked as the third leading overseas buying nation in Dublin, according to Knight Frank.
Responding to questions from PropertyGuru, John Ring, Investment Analyst, Investments & Asset Receivership, Knight Frank Ireland, said that the ranking of Singapore in first position and Malaysia in third position reflects what Knight Frank residential agents have experienced on the ground in Dublin.
He highlighted three factors:
“The Irish market is not prone to international residential capital flows like London; the Irish market is being dominated by domestic buyers who account for 75 percent of the total residential purchases.
“The majority of the 25 percent of foreign buyers are Irish expatriates who have built up a level of wealth in places like Australia and Asia during the recession in Europe. They now see an excellent time to buy into the prime residential property cycle in Ireland with a view to occupying the property upon return. “Transaction volumes are still suppressed in the already thin prime market due to a lack of supply which leaves room for volatile results, as correctly pointed out by PropertyGuru.”
Ring added that, having said that, the emergence of Asian investors on the Irish property investment landscape is unmistakable and spreads across asset classes.
There are two primary reasons for this, he said.
“The first is part of the wider global trend of greater capital flows from Asia to Europe which has been predominantly focused on London, but with some of this money finding its way to Dublin. This is primarily due to its proximity to London and also because it is an English speaking country which facilitates ease of doing business.
“More importantly, Ireland has always enjoyed very strong educational links with Singapore and Malaysia,particularly in medicine, which creates the dual effect of creating an investment rationale for those sending children to study here while also facilitating a transfer of knowledge of the economy in those that return home having studied here.”
Ring concluded by saying that Ireland’s prime residential market is supported by a very compelling investment case with values still little over half of what they were in 2008, despite having increased by almost 20 percent in 2013.
“When one considers this in the context of a strengthening economy and favourable demographic trends, there is a lot of up-side potential in the prime residential market,” he said.
Photo: Residential property in Monkstown, Dublin; Savills
Story: Andrew Batt via PropertyGuru