Samuel OskysRoughly 140 luxury properties priced at more than $5.8 million have been purchased by foreigners in the second quarter despite the 20% additional buyers stamp duty for foreigners.
The increase is thought to be a result of the US-China trade war. The issues have caused Chinese and Hong Kong investors to search for a reliable safe location to store money.
Alan Cheong head of Savills Singapore research consultancy commented on the develops stating:
There has been a spike in that category and we suspect that a lot of them actually could be a mixture of Hong Kong residents and mainland Chinese,
adding,
We have not seen those numbers (of foreigners buying super-luxury homes in Singapore) since the first quarter of 2007.
Financial safety may be the main driving force for foreign investors however Singapore also has other noteworthy factors that have contributed to the increase in purchases. Singapore is rated the most liveable out of the 10 capital cities among the ASEAN. The educational system is also one of the best in the world with the city holding 52 international schools and universities.
Out of those drawn to invest in Singapore mainland Chinese investors accounted for the largest group of buyers across all categories from 2017 until July this year, buying a total of 1,058 private properties. Those from Hong Kong accounted for the sixth biggest group purchasing 85 private properties, favouring high-end apartments.
Cheong commented:
They feel that they need to hedge themselves [against risk] so they buy in Singapore, and the 20 percent stamp duty is worth the cost.
Singapore’s private property is not the only sector that has seen a recent interest. Commercial real estate is also popular and is exempt for the additional stamp duty for foreign buyers. Hong Kong-based companies such as the Far East Consortium International Limited and Gaw Capital have been purchasing projects.
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