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reporter2
24-04-13, 13:45
http://www.straitstimes.com/archive/tuesday/premium/money/story/foreign-buyers-keen-private-homes-again-20130423

Foreign buyers keen on private homes again

But numbers smaller after cooling measures; focus on suburban condos

Published on Apr 23, 2013

By Melissa Tan


FOREIGN buyers are returning to the private property market but their numbers are still well under levels seen before the big stamp duty hit in December 2011.

Their focus has also changed, with mass-market condos in suburban areas now higher on their wish lists, a shift from the high-end homes that they have traditionally sought.

Analysts said the additional buyer's stamp duty (ABSD), which imposed a 10 per cent levy - now 15 per cent - on purchases by foreign buyers, has prompted more of them to aim downmarket.

Foreign buyers, not including PRs, bought 10.7 per cent of the 4,884 private homes sold in the first quarter of this year.

This proportion is well under levels seen before the ABSD was implemented but an increase from their 7.4 per cent share of the 7,918 units moved in the three months to Dec 31.

It is also a jump from the first, second and third quarters of last year when foreign buyers accounted for 5.7 per cent, 7.1 per cent and 7.2 per cent respectively, of new private home purchases, according to caveats lodged with the URA.

In the first quarter, the prime District 10 remained the most popular but District 19 - which consists of Serangoon, Hougang, Punggol and Sengkang - was close behind. Among the most popular projects among foreign buyers was D'Leedon in prime District 10. Projects in District 19 favoured by foreign buyers include La Fiesta in Sengkang.

The Chinese and Indonesians were the largest groups of buyers in the first quarter of this year, followed by Malaysians. Chinese home-buyers in particular seem to be regaining their foothold in the market. They accounted for 42.6 per cent of the 108 foreign buyers last month, the first time since July they have surpassed Indonesians, who made up 32.4 per cent of buyers last month.

This contrasts with the first two months of this year, when Chinese buyers made up 25 per cent to 30 per cent of foreign purchases while Indonesians accounted for about 38 per cent in both months.

China national Lin Youzhong, 53, said he had the ABSD in mind when he started property hunting. The businessman from Beijing bought a 1,302 sq ft four-room unit at euHabitat in Eunos in February for $1,173 psf or around $1.53 million. Speaking in Mandarin, he told The Straits Times by telephone that the total quantum was still affordable after factoring in the ABSD. Mr Lin added that he and his wife visit Singapore once or twice a year and may stay in the unit but it is meant largely as an investment.

Consultants said the momentum may continue as Chinese buying interest appears as strong as it was before the cooling measures, which included a higher ABSD.

Real estate agency Remax executive director Thomas Tan said he received more than 150 registrations of interest from Chinese buyers when he conducted an exhibition on Singapore and Malaysian property in Beijing earlier this month.

Jones Lang LaSalle Singapore research director Ong Teck Hui said the January cooling measures slowed overall transaction volume but "while the number of Singaporean buyers continued dipping in March, the numbers for PRs and foreigners stabilised".

"This suggests that Singaporean investors ...seem to have been affected more by the measures than PRs and foreigners".

In absolute terms, the number of foreign purchases - 523 in the first quarter - was 40 per cent higher than the 373 recorded in the same period a year ago.

This is despite the ABSD being raised on Jan 12 this year, from 10 per cent to 15 per cent for foreign buyers, as part of a seventh round of cooling measures.

However, the proportion of foreign buyers has still not returned to pre-ABSD levels.

Before the introduction of the ABSD in December 2011, foreigners accounted for a solid 21.2 per cent of private home purchases in the fourth quarter of 2011. This dropped off sharply to 5.7 per cent for the first quarter of last year, as the initial introduction of ABSD at 10 per cent for foreign buyers forced a retreat.

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indomie
24-04-13, 14:15
Foreign homebuyers ballooned to 27% in 1Q13

It exceeded 2012's average proportion.

According to Knight Frank, based on caveats lodged data available as at 22 April 2013, the proportion*of foreign homebuyers, including Permanent Residents (PRs) and non-PRs*(NPR), increased to 27 per cent in 1Q 2013, higher than the average*proportion of 22.2 per cent in 2012.

DKSG
24-04-13, 16:37
Foreign homebuyers ballooned to 27% in 1Q13

It exceeded 2012's average proportion.

According to Knight Frank, based on caveats lodged data available as at 22 April 2013, the proportion*of foreign homebuyers, including Permanent Residents (PRs) and non-PRs*(NPR), increased to 27 per cent in 1Q 2013, higher than the average*proportion of 22.2 per cent in 2012.

Yea ... as what I have posted earlier.
All these can be seen in showflats a few months back.

And the momentum is continuing. Singapore properties are seen as very good value compared to what they can get in China. We will see more this coming up in the next few months.

DKSG

radha08
24-04-13, 18:11
huat ahh:)

mnd:doh:

Ringo33
24-04-13, 19:11
not sure if it is coincidental. I was at Raffles place to collect some USD, right in front of me was an indo lady with her ang moh lawyer discussing about converting foreign currency into S$ to buy investment property.

indomie
24-04-13, 19:39
not sure if it is coincidental. I was at Raffles place to collect some USD, right in front of me was an indo lady with her ang moh lawyer discussing about converting foreign currency into S$ to buy investment property.
Now people starting to accept that CMs is permanent and your money in the bank will earn next to nothing for a long long time.

Rysk
24-04-13, 19:50
The foreigners will slowly get use to the ABSD & finally come & buy..

During that time the implementation of COE in the 1990.. a few dollars COE from the start, ppl KPKB said is crazy. Now ppl already get use to it.. And some are paying 120k (eg. 60k COE over the car price of 60k) which is 100% more just to buy a car

So what is 15% more for buying a pty here? :D

Rosy
24-04-13, 20:01
Absd is the best and fairest way to tax the rich. :)

cheerful
25-04-13, 11:31
Yea ... as what I have posted earlier.
All these can be seen in showflats a few months back.

And the momentum is continuing. Singapore properties are seen as very good value compared to what they can get in China. We will see more this coming up in the next few months.

DKSG

May I ask office boy for expertise view please - in your opinion if Bangkok properties would be good value as well? Saw CNA repeat telecast yest evening, plus ST today advertising on Rajadamri, so start to wonder ... thanks!

eng81157
25-04-13, 15:56
May I ask office boy for expertise view please - in your opinion if Bangkok properties would be good value as well? Saw CNA repeat telecast yest evening, plus ST today advertising on Rajadamri, so start to wonder ... thanks!

u do know that bangkok is below sea-level and is still sinking annually eh

DKSG
25-04-13, 18:27
u do know that bangkok is below sea-level and is still sinking annually eh

Ah Eng is right.

Bangkok is a sinking city. Even the government there is discreetly looking at alternative capital to move to.

But of course we are talking about different time ranges. Sinking city is about 10-20 years down the road. Property investment esp the flipping kind is less than 5 years.

Another point to note is that BKK properties only see very slow growth. If you think the next big jump will be in BKK, then go for those nice areas maybe around Suhkumvit (dont know spell correct or not) Sol 0-10++.

Dont buy from Sg, go down if you need to to the actual site. As we all know, when they bring it over here, the hungry agents here already mark it up by easily 2%.

Thats all I can say here, anything more in depth, please PM me.

DKSG
PS : But remember, I am just an Office Boy.