Due to the developed counties perusing an easy monetary policy, many expects the hot money to flow into Asia and drive up asset prices. However, in the recent UBS research report:
"Capital inflows in to Singapore, while rising, are far from levels that cause concern. So far, base money growth is muted, and inflows appear concentrated in the bond market. Equity market volume is up 43% QTD from 1H10, but remains 15% below the average in 2H07. Foreign purchases of residential homes are 22% of the total, in line with the 10-year historical average (see chart below)."
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| Foreign Purchase of Singapore Properties. (Reproduced from UBS Investment Research: Singapore - Outlook 2011) |
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