Proportion of foreign buying stable and looks to be rising: HSR
SINGAPORE - Foreign interest in non-landed private residential properties is returning, following a slump in interest after the Additional Buyer's Stamp Duty (ABSD) was introduced in December last year.
Looking at the four largest groups of foreign purchasers by nationality, Malaysians made up the largest portion of foreign purchasers in Q2, at 6.3 per cent, followed by Indonesians at 4.7 per cent, Mainland Chinese at 4.4 per cent, and Indian nationals, at 3.0 per cent.
Indonesians accounted for the biggest jump in transactions, from 247 in Q1 to 391 in Q2, followed closely by Malaysians from 398 in Q1 to 521 transactions in Q2.
Mainland Chinese transactions rose to 365 in Q2 from 311 the previous quarter while transactions done by Indian nationals rose from 173 in Q1 to 252 in Q2.
For the period from July to Aug 23, mainland Chinese demand perked up, accounting for 6.2 per cent of foreign purchases, just behind that of Malaysians at 7 per cent. This was followed by buyers from India and Indonesia, which constituted 4.2 and 3.7 per cent respectively.
Malaysians were involved in 120 transactions between July and Aug 23, followed by mainland Chinese (107), Indian nationals (72), and Indonesians (63).
Said Alan Cheong, Savills Singapore research head: "(The number of) Mainland Chinese buyers fell the most in Q1. Indonesian buying also fell sharply in Q1. However, Malaysian buyers have been a stable feature in the marketplace."
A total of 8,311 transactions (including sales to Singaporeans) were clocked in Q2, a 37.2 per cent jump over the 6,059 transactions seen the previous quarter.
The percentage of foreign buying in Q1 and Q2 was 22.96 per cent and 23.58 per cent respectively. Based on data from July to Aug 23, this figure rises to 27.06 per cent.
"It appears that the market for foreign buyers has stabilised in Q2 2012 and is beginning to pick up again from data obtained in Jul - Aug 23. We believe that foreign demand is returning," added Mr Cheong.
Chinese buyers, in particular, continue to show much potential for Singapore property, noted HSR in a separate report.
Between January and August 2012, non-landed residential properties in districts 19 (Serangoon Gardens, Hougang, Punggol), 18 (Tampines, Pasir Ris), 12 (Balestier, Toa Payoh & Serangoon) and 23 (Hillview, Dairy Farm, Bukit Panjang & Choa Chu Kang) were popular with Chinese buyers.
That said, HSR's Elaine Chow, associate director of research and consultancy, expects a continued decline in the number of Chinese buyers in the near-to-medium term.
"The Chinese government's move to reduce interest rates twice since June has spurred buying especially among genuine home buyers. This has resulted in an increase in new home prices in 49 out of 70 cities in July 2012 (according to the National Bureau of Statistics)," she said.
"With the global economic outlook remaining cloudy and further upside to residential prices at home, Chinese investors will likely be turning their attention back to home ground (including Hong Kong)."
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Tue, Aug 28, 2012
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Source: AsiaOne