Foreign buyers account for 7% of Singapore’s property market in Q3

Foreign buyers of Singapore properties accounted for 7 percent of the market in the third quarter this year.

The proportion had remained unchanged from the previous second quarter.

However, for the first three quarters of the year, foreign purchases averaged about 6 percent.

This is according to the latest report on demand for Singapore’s residential properties in Q3 by property consultant DTZ.

The report also said that demand for luxury landed homes remained strong in the same quarter.

There were altogether 14 Good Class Bungalows (GCBs) transacted in Q3, compared to 12 GCBs in the previous quarter.

Interest in the landed segment was also strong in Sentosa Cove with 6 units sold in Q3 compared to 5 in Q2 and two units in Q1.

These are for purchases worth more than S$10 million.

Notably, purchases by US nationals and Norwegians in Sentosa Cove have increased since the implementation of the Additional Buyer’s Stamp Duty (ABSD).

The 10 percent additional stamp duty does not apply to them.

Year-to-date, US nationals have bought a total of 126 private homes in Sentosa Cove, making them the top non-SIngaporean buyer group of private homes there.

This is a huge contrast to only 3 and 1 purchases by Americans in 2010 and 2011 respectively.

DTZ Research expects the market to continue to gain support from local buyers despite the cooling measures on loan tenure and loan-to-value limit implemented in October 2012.

It also expects limited impact on the high-end segment of above $5 million since the buyers have deeper pockets.

Meanwhile in other segments, it expects demand to shift to smaller and more affordable units as buyers with tight budgets may move one notch lower.

Source : Channel NewsAsia – 19 Nov 2012

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