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Thread: Fewer foreigners buying private homes in S'pore

  1. #1
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    Default Fewer foreigners buying private homes in S'pore

    http://www.businesstimes.com.sg/sub/...76018,00.html?

    Published February 2, 2012

    Fewer foreigners buying private homes in S'pore

    Foreign buying share drops to 3% in Jan from 23% in Dec

    By KALPANA RASHIWALA


    (SINGAPORE) The proportion of private homes picked up by foreigners who are not Singapore permanent residents spiked in December before easing in January, according to preliminary numbers.

    A caveats analysis by DTZ Research shows that the foreign buying share increased to 23 per cent in December, from 16 per cent in November and 20 per cent in October. However in January 2012, the share slipped to just 3 per cent - although the caveat pool for the month is small, with just 131 caveats lodged so far. More will stream in over the coming weeks.

    In comparison, for October, November and December last year, 2,147, 2,191 and 1,711 caveats respectively were lodged.

    Despite the small caveat pool for January, the sharp drop in foreign buying share to 3 per cent in that month from 23 per cent in the preceding month is remarkable, say analysts.

    DTZ's Asia Pac research head Chua Chor Hoon suggests the surge in foreign buying share in December could have been due to foreigners rushing to close purchases on the night of Dec 7, when the government announced the additional buyer's stamp duty (ABSD).

    The duty was set at 10 per cent for any foreign purchase of residential properties in Singapore starting Dec 8. Remission of ABSD was given for options granted on or before Dec 7 and exercised on or before Dec 28, 2011. Offering another explanation, SLP International managing director Peter Ow reckons the jump in the foreign buying share in December could be a reflection of strong sales to foreigners in the preceding month.

    'Typically a caveat would be lodged upon exercise of option and this is usually a few weeks after the date of grant of option,' he adds.

    Agreeing, Rodyk & Davidson partner Norman Ho says: 'For developer sales, buyers may have up to five weeks from the date of grant of option to exercise the option by returning the signed sale and purchase agreement to the developer. In the secondary market, it's usually two to three weeks.'

    'In some cases, buyers may not even have engaged lawyers to act for them in the early stages of their transactions and hence caveats may not be lodged until much later,' he adds.

    Initial evidence of a slowdown in foreign buying post-ABSD has already started to surface.

    At the popular Watertown condo in Punggol, where 771 units were sold in January, non-PR foreigners accounted for about 5 per cent of buyers (with PRs making up further 5 per cent of buyers and Singaporeans the majority 90 per cent). At The Hillier next to the upcoming Hillview MRT Station, options for 387 units were granted last month, with non-PR foreigners and PRs each having a 10 per cent buyer share.

    In comparison, at another Far East Organization development - The Tennery above the Ten Mile Junction LRT Station in Bukit Panjang - launched last year, non-PR foreigners made up 23.2 per cent of buyers, and PRs just 0.2 per cent.

    DTZ's Ms Chua reckons that foreign buying is set to ease as the 10 per cent ABSD would be a substantial premium for most buyers - although not the super-rich.

    SLP's Mr Ow acknowledges that foreign buying has come off in the aftermath of the ABSD. 'However, it will take about six months to figure out the full impact of the ABSD. For instance, once prices stabilise after an initial fall and if the Singapore economy continues to be fundamentally sound, foreign buyers are likely to re-enter the Singapore market, notwithstanding the 10 per cent ABSD,' he added.

    DTZ's caveats analysis also showed that non-PR foreign buyers made up 20 per cent of private homes bought in the fourth quarter of last year, up from a 19 per cent share in Q3 and 16 per cent each in the first two quarters of 2011.

    Full year 2011, the foreign buying share was 17 per cent, up from 12 per cent in 2010.

    For non-landed properties, the most sought-after projects by foreigners in Q4 2011 were euHabitat at Jalan Eunos (65 units), The Minton in Hougang(25 units) and Bedok Residences (23 units).

    For Q4 2011, the most popular landed properties among foreigners were at euHabitat (8 units) and Woodhaven in Woodlands (5 units). Because these two projects have condominium status, foreigners do not require the Singapore Government's permission to buy strata landed homes in such projects.

  2. #2
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  3. #3
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    i am surprised with even 3%. Why are they still buying with 10% ABSD?

    any idea?

    I would expect the % of PR buyers to increase further.

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    Quote Originally Posted by Rosy
    i am surprised with even 3%. Why are they still buying with 10% ABSD?

    any idea?

    I would expect the % of PR buyers to increase further.
    ABSD absorbed by developers?

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    Quote Originally Posted by Rosy
    i am surprised with even 3%. Why are they still buying with 10% ABSD?

    any idea?

    I would expect the % of PR buyers to increase further.
    The reason... http://forums.condosingapore.com/showthread.php?t=12891

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    Quote Originally Posted by Rosy
    i am surprised with even 3%. Why are they still buying with 10% ABSD?

    any idea?

    I would expect the % of PR buyers to increase further.
    The full and combined impact of WT and Hillier not felt yet and will probably be reflected in the Feb figures. As you can see it shows only 131 units sold.

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    that is a very big drop.... I expected a drop to 10%, to 3% is really unexpected......

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    also since last oct, figures began to drop. the jan one is really the biggest drop leh.......sigh.....game over.

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    local buyers are very good negotiators.. with the missing foreigners, i think prices of landed will drop even more liao..

    only 131 units for so many launches is ehem ...not a very good sign leh...

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    76% of 131 units does that mean only 100 Singaporean buyers in the market in Jan?


    woahahahahahaha.... i eat grass liao lor like dat....

  11. #11
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    Quote Originally Posted by blackjack21trader
    76% of 131 units does that mean only 100 Singaporean buyers in the market in Jan?


    woahahahahahaha.... i eat grass liao lor like dat....
    131 caveats lodged so far.

    caveats for new launches usually takes longer to be lodged.

  12. #12
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    Quote Originally Posted by Rosy
    131 caveats lodged so far.

    caveats for new launches usually takes longer to be lodged.
    Yep... WT and Hillier alone already 1000+ units.

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