{"id":113626,"date":"2020-01-15T11:24:18","date_gmt":"2020-01-15T04:24:18","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/foreign-buyers-show-resilience-in-the-luxury-condo-market\/"},"modified":"2020-01-15T12:03:16","modified_gmt":"2020-01-15T05:03:16","slug":"foreign-buyers-show-resilience-in-the-luxury-condo-market","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/foreign-buyers-show-resilience-in-the-luxury-condo-market\/","title":{"rendered":"Foreign buyers show resilience in the luxury condo market"},"content":{"rendered":"


\nWhile the cooling measures in 2018 have dampened demand for residential properties, foreigners who bought top-end condos are showing more resilience.\u00a0
\nThe cooling measures implemented in July 2018 may have lowered general home-buying demand, but foreigners appear to have been more resilient towards high-end condos, reported The Business Times, based on a report by ERA Research and Consultancy.\u00a0
\nThe ERA report, which is based on data from the Urban Redevelopment Authority\u2019s (URA) Realis, revealed that the quantity of non-landed private residential units in the Core Central Region (CCR) bought by citizens declined to 2,427 units after the measures \u2013 a 38% drop.
\nPurchases made by Permanent Residents and foreigners dropped by 30% to 1,264 units. Residential purchases made by companies in the CCR dropped to 49 units from 142 units, reflecting a decrease of nearly two-thirds.
\nThe ERA report covered transactions made for non-landed units in the CCR (Districts 9, 10 and 11, Sentosa Cove as well as Downtown Core) and excluded both landed housing and executive condominiums (ECs). Data was compared between the 18 months prior to the cooling measures (January 2017 to June 2018) and the 18 months after the curbs (July 2018 to December 2019), and included Permanent Residents under foreigners.
\nRELATED ARTICLE:\u00a0CCR: Which Prime District Had The Best Growth In Asking Price?
\nMeanwhile, the number of private housing units transactions across the country dropped by around 23% to 25,270 units, compared to 32,866 units before the measures. There was a 20% drop for Singaporean buyers and a 32% drop for foreigner buyers.
\nThe recent wave of measures also brought in increased Additional Buyer\u2019s Stamp Duty (ABSD). The duty for citizens buying their second home increased to 12% from 7%, while those buying their third and subsequent property were subjected to 15% ABSD, which was previously 10%.
\nForeigners are now subjected to 20% ABSD, while Permanent Residents (PRs) are subjected to 15% ABSD for their second and subsequent purchased properties.
\nFor the high end residential real estate segment, the report explained: \u201cforeign buying demand was more resilient than local demand in the face of the latest cooling measures.\u201d\u00a0
\nThis implied that the foreign buyers who are willing to pay higher ABSD are high net worth persons only interested in luxury homes.
\n\u201cForeign buying demand in the high-end residential market weathered the cooling measures better than foreign demand in the rest of the real estate market, illustrating that the underlying demand for prime real estate from foreign homebuyers was still relatively healthy,\u201d the report noted.
\n\u201cSingapore citizens have always been the largest group of buyers of luxury homes in Singapore, even after the 2018 cooling measures\u201d, said the report.\u00a0
\nFrom July 2018 to December 2019, Singaporeans made up 65% of the buyers for non-landed housing units in the CCR, while foreigners and companies making up 34% and slightly over 1% of the buyers respectively.
\nThe ranking of the largest group of foreign buyers of high-end non-landed residential property remained mostly the same, even as the number of units bought by buyers from Vanuatu, Dominica, Denmark, Cambodia, Cyprus, Thailand and Spain decreased after the cooling measures\u2019 implementation.
\nAfter the measures, Chinese nationals purchased 380 non-landed units in the CCR. This made them the biggest group of purchasers for high-end residential units.
\nIndonesian buyers purchased 149 non-landed homes in the CCR, enough for them to take the second place. Americans stayed at fourth place, while buyers from Taiwan and Hong Kong made up the rest of the top five spots.
\nThe ERA report covered the CCR and compared data under the 18 months before the implementation of the cooling measures (January 2017 to June 2018) and the 18 months after the implementation (July 2018 to December 2019). It did not include executive condominiums and landed housing but did include permanent residents and foreigners.
\nLooking for a property in Singapore? Visit\u00a0PropertyGuru\u2019s\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\nVictor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email\u00a0victorkang@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Foreign buyers show resilience in the luxury condo market<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

While the cooling measures in 2018 have dampened demand for residential properties, foreigners who bought...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-113626","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-tyG","jetpack-related-posts":[{"id":101984,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/condo-purchases-by-foreigners-fell-sharply-in-q3\/","url_meta":{"origin":113626,"position":0},"title":"Condo purchases by foreigners fell sharply in Q3","date":"December 4, 2018","format":false,"excerpt":"\r Aerial view of luxury apartments in Singapore. Home purchases by foreigners here have fallen significantly after the government imposed a new round of property cooling measures on 6 July 2018, reported Singapore Business Review, citing a chart from Edmund Tie & Company (ET&Co). Amongst the major groups of foreign\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":137090,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/some-condos-offer-discounts-150-hdb-flat-owners-caught-buying-private-homes-within-mop-and-more\/","url_meta":{"origin":113626,"position":1},"title":"Some Condos Offer Discounts, 150 HDB Flat Owners Caught Buying Private Homes Within MOP, and More","date":"May 22, 2023","format":false,"excerpt":"\r Some Condos Offer Discounts, 150 HDB Flat Owners Caught Buying Private Homes Within MOP, and More16 to 22 May 2023 Several condominium projects, mostly in the Core Central Region (CCR), have offered discounts to attract buyers in April and May 2023. Meanwhile, some HDB flat owners have attempted to\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2023\/05\/singapore-condo.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":101542,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/luxury-condo-prices-hit-record-high-in-q3\/","url_meta":{"origin":113626,"position":2},"title":"Luxury condo prices hit record high in Q3","date":"November 22, 2018","format":false,"excerpt":"\r View of luxury apartments in Singapore. The average price of resale luxury condos in Singapore reached a new record high of $2,063 psf in Q3 2018, likewise for new sales of high-end condos at $2,819 psf, according to a new report from OrangeTee & Tie. The most expensive luxury\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":112777,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/private-residential-price-increase-in-singapore-unlike-other-cities-imf\/","url_meta":{"origin":113626,"position":3},"title":"Private residential price increase in Singapore unlike other cities: IMF","date":"November 30, 2019","format":false,"excerpt":"\r Private residential prices in Singapore appear to have \u201cdecoupled\u201d from the worldwide chase for property rental yields\u00a0since 2013, as wealthy foreign buyers continue to exert their influence on the city state, according to The Business Times citing a study by the International Monetary Fund (IMF). According to the IMF\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2019\/11\/singapore-property-market-foreign-buyer-demand-chart-table.png?fit=1200%2C703&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":27891,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/singapore-home-market-unaffected-by-indonesian-tax-amnesty\/","url_meta":{"origin":113626,"position":4},"title":"Singapore home market unaffected by Indonesian tax amnesty","date":"September 30, 2016","format":false,"excerpt":"\r Indonesian property holdings in Singapore have seen lower than expected\u00a0liquidation since the introduction of the TAS. The implementation of the Tax Amnesty Scheme (TAS) in Indonesia has not had any material impact on Singapore\u2019s residential segment, said Credit Suisse in a report. Credit Suisse noted that Indonesians have historically\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":28767,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/singapore-home-market-unaffected-by-indonesian-tax-amnesty-2\/","url_meta":{"origin":113626,"position":5},"title":"Singapore home market unaffected by Indonesian tax amnesty","date":"October 6, 2016","format":false,"excerpt":"\r Lower than expected liquidation since the introduction of the tax amnesty program The implementation of the Tax Amnesty Scheme (TAS) in Indonesia has not had any material impact on Singapore\u2019s residential segment, said Credit Suisse in a report. Credit Suisse noted that Indonesians have historically been amongst the largest\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/113626"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=113626"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/113626\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=113626"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=113626"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=113626"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}