Q1 saw 5-year high for the foreigners purchasing a home in Singapore
In the first quarter of 2023, the share of non-landed Singapore properties purchased by non-permanent residents or international buyers reached 6.9 percent, more than tripling from 3.1 percent in the same quarter a year earlier, according to a study by OrangeTee & Tie.
According to a report on the effects of the higher additional buyer’s stamp duty rates that were imposed on 27 April, the percentage of non-Singaporeans and non-PRs purchasing homes (excluding executive condos) rose to its highest level since the first quarter of 2018.
Senior vice president of Research and Analytics at OrangeTee Christine Sun said that buyers’ perception of Singapore as one of the best places for property investment may remain unaffected by the government’s cooling measures, due to the city-state’s solid economic fundamentals and the local property market’s status as a safe haven.
For this reason, “some high-net-worth individuals may continue to park their wealth here as luxury properties are pricey in many other cities,” Sun added. Some may decide to start investing in commercial properties instead of homes.
Emphasis on Upscale Apartments
The survey found that in the first three months of this year, international buyers purchased 259 condominiums like Dunman Grand, an increase from the 226 purchased in the last quarter of 2022 and higher than the 5-year quarterly average of 249 purchases.
Since 161 residences were exchanged in the fourth quarter of 2013, the number of non-landed luxury condominiums purchased by foreigners in the Core Central Region reached a record 159 units during the January-March period from various units like Dunman Grand Floor Plan.
The percentage of non-landed CCR properties purchased by non-PRs increased to 15.5% in the first quarter from 8.9% in the same time a year earlier, shortly after the ABSD was raised to 30% in December 2021.
From the first quarter of 2022 to the first quarter of 2023, condominiums selling for at least S$10 million (now $7.5 million) had the largest percentage of foreign purchasers (43.9%), according to Sun. During the same time period, non-resident aliens accounted for 33.2% of buyers of condominiums priced between S$5 million and S$10 million.
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