Despite the cooling measures and hefty levies last year, data showed an unexpected rebound in the market as foreigners, especially Chinese buyers, are once again flocking into Singapore’s luxury property market.
While the cooling measures introduced last year dampened demand, recent data show an unexpected rebound in the market.
Despite the introduction of hefty levies last year, foreigners are once again flocking into Singapore’s luxury property market, with Chinese buyers leading the pack, reported Reuters.
“The Chinese are coming,” said Cosmopolitan Real Estate managing director Chandran V.R. “The factors are the issue in Hong Kong and also the trade war…They are looking at the stability of our currency.”
Chandran noted a rush of potential Chinese buyers for the $12.8 million penthouse that he is marketing in recent weeks.
Other brokers shared that they were aware of Chinese buyers who entered into four deals to acquire apartments in Singapore worth $20 to $30 million in the last three months.
List Sotheby’s International Realty revealed that Singapore’s luxury apartment market registered 169 deals worth $1.4 billion in the first half of 2019, with permanent residents and foreigners accounting for 70 percent of buyers.
Chinese buyers have recently dominated the city-state’s prime residential markets, taking over from affluent tycoons from Indonesia and Malaysia.
While the cooling measures introduced last year dampened demand, recent data show an unexpected rebound in the market.
OrangeTee & Tie’s analysis of transaction data as of 10 July show that transaction volumes within the core central region – popular among rich foreigners – rose the highest in a year in Q2.
After consistently dropping for five straight quarters, the number of foreigners purchasing apartments in the country’s prime districts rose in the second quarter from the previous quarter.
“The current social and political uncertainties around the world, including the trade war and Hong Kong social unrest, magnify Singapore’s strong positioning as a safe haven for property investment,” said Christine Sun, OrangeTee & Tie’s head of research & consultancy.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
