Mainland purchases of Singapore homes up 3%

The proportion of mainland Chinese buying Singapore residential properties jumped three percent in the fourth quarter of 2010, from 20 percent in the previous quarter.

For the full-year 2010, their proportion among non-Singaporean buyers hit a yearly high of 19 percent, against 15 percent in the previous year.

Ms. Chua Chor Hoon, Head of DTZ South East Asia Research, commented: “Mainland Chinese buyers are expected to continue to be among the top two groups of foreign buyers, as the implementation of property market curbs in China and growing wealth of the mainland Chinese will motivate more of them to make purchases overseas, including Singapore.”

The proliferation of small units in new projects has resulted in an increase in the number of transacted units, each measuring less than 1,000 sq ft, in 2010 than in the previous year. The number of transactions for units of less than 500 sq ft rose 114 percent, while units measuring 500 to 1,000 sq ft saw a 28 percent increase in transactions.

Purchases by companies also rose to four percent in Q4 2010, from three percent in Q3. This increase was attributed to investment funds which acquired units in bulks, especially in prime developments.

After the January announcement of more measures aimed at stabilising the residential market, DTZ looks forward to quieter market activity this year. Sub-sales activity will likely drop in 2011, as short-term speculation will probably affect the seller’s stamp duty (SSD), which was announced in August 2010 and increased in January this year, said Ms. Chua.

Source : PropertyGuru – 25 Feb 2011

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