FOREIGN EQUITY INVESTMENT IN REAL ESTATE

Abstract

Since independence, Singapore has been operating an open door system to encourage both local and foreign investment. It has pursued a development strategy based partly on attracting foreign investment while at the same time obtaining from the investment substantial contribution to the country's development program. Foreign investment has played a major role in Singapore's economic development since its founding in 1819, and has focused on the manufacturing and service industries despite the country's lack of resources or large domestic market. However, the real estate industry has played a very important role in contributing to the economic growth of Singapore too. There has been increasing trend of foreign investment in the real estate industry. This study therefore strives to investigate the significance of foreign investment in Singapore's real estate industry. It focus on corporate foreign investment since the amount of capital/equity involve are greater as compared to that of the individual investors. As opposed to individual foreign investors, corporate foreign equity investment do not exert significant influence on the performance of the real estate industry during the period of study from 1980 to 1994.