Strong educational links are boosting Asian property investment in Ireland, says leading global agent, Knight Frank.
Some of the results surprised a few analysts, not least the growing presence of Asian buyers in Dublin, says Kate Everett-Allen, of Knight Frank’s International Residential Research department.
John Ring, Investment Analyst in Knight Frank’s Dublin office, explains, “The ranking of Singapore in first position reflects what Knight Frank residential agents have been experiencing on the ground in Dublin.”
He says there are three factors to bear in mind. “The Irish market is not prone to international residential capital flows like London; the Irish market is dominated by domestic buyers who account for 75% of total residential purchases.
“The majority of the 25% 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 this as 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.”
Even so, the emergence of Asian investors on the Irish property investment landscape is unmistakable and spreads across asset classes. It is boosted by strong educational links.
“There are two primary reasons for this: 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.”
Despite having increased by almost 20% in 2013, values in Ireland’s prime residential market are still a little over half of what they were in 2008.
“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,” Mr Ring concludes.
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