Local buyers fire up luxury home sales

Singaporean buyers of luxury homes so far this year have surpassed the total number of similar transactions recorded for the entire 2011, according to The Business Times.

A report by DTZ revealed that 46 luxury homes were acquired by Singaporeans year-to-date, exceeding only 40 units last year. The growth was mainly credited to robust numbers in Q2, wherein 31 high-end homes were sold to Singaporeans, compared to only 11 units over the same period last year.

Additionally, purchases by local buyers climbed to 35 percent year-to-date, from only 19 percent in 2011.

In comparison, foreign buyers bought 49 homes or about 37 percent of all transactions from Q1 to Q3, lower compared to 100 luxury homes (47 percent) in 2011.

Meanwhile, the remaining 27 percent of luxury home transactions were made by Singapore permanent residents (PRs) and companies, with 32 and four purchases respectively.

Local purchases also helped stabilise prices in Q3, reverting from a 2.0 percent decline in the previous three quarters. For both Q2 and Q3, luxury homes are priced S$2,621 psf.

“This shows that there is underlying demand from cash-rich local buyers who have been waiting at the sidelines for more attractive pricing,” said DTZ.

Source : PropertyGuru – 26 Sep 2012

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