The number of Singaporeans acquiring luxury homes soared 69 percent from 36 percent over the same period last year. Singaporeans’ share of local home purchases also rose the highest in over a decade versus foreigners, with 79 percent of private apartments acquired by locals, according to a report.
Singaporeans’ share of local home purchases rose the highest in a decade versus foreigners, with 79 percent of private apartments snapped up by locals during the first quarter of 2019, reported Bloomberg citing OrangeTee & Tie.
In fact, the proportion of locals acquiring luxury homes soared 69 percent from 36 percent over the same period last year.
“The rising number of affluent locals purchasing luxury homes indicates their confidence that Singapore remains a safe haven for capital preservation and appreciation,” explained Christine Sun, head of research and consultancy at OrangeTee.
Reflecting that confidence, a PropertyGuru survey showed that while most locals consider home prices to be too high, two-thirds believe that apartments within the city-state are still affordable.
The survey also found that younger people are moving out of their family homes earlier, while demand for executive condos has increased among upgraders.
Read more about PropertyGuru’s latest Consumer Sentiment Survey here.
“As wealth creation continues to grow in Singapore the desire and ability to pursue higher-quality living is driving the higher proportion of private home ownership,” noted Christine Li, Cushman & Wakefield’s head of research for Singapore and Southeast Asia.
“While foreign buyers have remained resilient, the proportion could have been much higher if cooling measures hadn’t been punitive to them,” she added.
Since the early part of the decade, the Singapore government has kept a tight rein on the property market to avoid runaway prices. It imposed higher stamp duties last July, with levies on foreigners being the highest at 20 percent.
Urban Redevelopment Authority data showed that developers sold 1,838 new homes last quarter, up 16 percent over the same period last year.
Affluent buyers were particularly fond of newly launched luxury condominiums, which saw sales more than double to 192 units – or the highest since December 2017.
The highest number of sales for super-luxury new condos, or those priced over $3,500 per sq ft (psf) was also registered in Q1 2019 after more than a decade. A penthouse within a development close to the Orchard Road shopping district was sold for $28 million or $4,927 psf.
Fiona Ho, Digital Content Manager at PropertyGuru, edited this story. To contact her about this or other stories, email email@example.com