Two-thirds of buyers are from S-E Asia and HK, says UK Reit

[SINGAPORE] Two-thirds of new London homes sold before completion are being purchased by South-east Asian buyers, according to Land Securities Group Plc, the UK's largest real estate investment trust.

Singaporeans account for a third of buyers from South-east Asia, with a further third from markets including Malaysia and Thailand, while Hong Kong makes up another third, Tom Eshelby, residential director at London-based Land Securities, said in an interview in Singapore yesterday.

Measures taken by Singapore and Hong Kong to cool their housing markets have prompted buyers to seek investments abroad. Singapore has linked borrowers' maximum debt levels to their incomes and raised stamp duties and capital gains taxes, while Hong Kong has increased minimum down payments six times in less than three years and in February doubled stamp-duty taxes for all properties over HK$2 million (S$321,403).