Foreigners snap up homes as rents start to bite

[mr funny]

Published March 12, 2008

Foreigners snap up homes as rents start to bite

Their purchases could account for half of 2007 transactions on the secondary market

By ARTHUR SIM


(SINGAPORE) A record number of foreigners here have opted to purchase homes instead of renting them at ever-climbing rates.

According to an analysis of transactions of private residential properties by DTZ Debenham Tie Leung, foreigners bought 6,536 non-landed homes from the secondary market in 2007 - the largest number since 1995.

They could account for more than 50 per cent of the secondary market transactions last year.

That is because while more than 20,000 non-landed homes were sold on the secondary market last year, this number includes the units from more than 100 collective sales. DTZ's analysis does not include en bloc units - though earlier reports had put this figure at around 6,000 for the first half of 2007 alone.

Purchases by foreigners on the secondary market represent a 105 per cent increase in volume compared to 2006.

DTZ research senior director Chua Chor Hoon said that while some buyers were investors, there were also those who 'are not on company budget and find it more worthwhile to buy rather than face escalating rentals, especially if they are going to be in Singapore for more than a couple of years'.

DTZ's figures for 2007 reveal that rents of prime apartments and condominiums increased 45 per cent year-on-year in 2007 to average $4.80 per square foot (psf). This was attributed to the influx of expatriates and a tight supply of prime apartments, as numerous prime developments were demolished or slated for redevelopment after being collectively sold.

The percentage of foreigners buying non-landed property from the primary market (developer sales) was lower at 25.4 per cent, or 2,314 transactions out of a total of 9,089, reinforcing the assertion that foreigners are more inclined to buy a home for immediate occupation.

Indonesians and Malaysians remain the biggest foreign buyers here, accounting for 23 and 17 per cent of all foreigners in 2007 respectively, but Indians (12 per cent), Britishers (8 per cent), Chinese (7 per cent) and Koreans (7 per cent) are also well represented.

While foreigners bought non-landed homes in record numbers last year, boosting demand in the process, their absence in the landed homes sector (because of restrictions imposed by the government) did not stop a record number of landed homes being sold in the secondary market.

DTZ's analysis reveals that of the total 5,211 landed homes sold in 2007, 4,823 were from the secondary market.

Apart from the bullish sentiment which 'spilled over' from the non-landed sector last year, the landed sector also saw demand rise as it was still considered comparatively good value.

DTZ's figures show that average capital values for non-landed freehold homes in the prime districts increased by 55 per cent year-on-year to $1,480 psf.

For freehold landed homes in the prime districts, average capital values of detached homes increased 31 per cent year- on-year, while average capital values of semi-detached and terrace homes rose 29 and 27 per cent respectively.

The situation was also exacerbated by the tight supply of new launches of landed homes in the year, estimated at around 650 units.

DTZ's Ms Chua also believes that with speculation less rampant in the landed housing sector - 'most buyers are owner-occupiers' - prices are expected to be more stable and could even prove 'more resilient' if the downturn in the global economy is protracted.

However, DTZ expects future supply of landed homes to be relatively low at just 3,100 units over the next few years, so this could push up demand and prices for both primary and secondary market landed homes.

Speculation, defined by the number of subsales, was rampant among developer sales of non-landed homes last year, hitting an all-time high of 4,631 transactions - a 312 per cent year-on-year increase over 2006.

Interestingly, while subsale transaction volume in 2007 was just 27 per cent higher than during the previous peak of 1996, the value of subsales was almost twice as high, hitting $7.9 billion.

The fourth quarter, however, marked a shift in sentiment in the property market. Only 3,947 non-landed homes were transacted in the quarter, of which just 846 were sold by developers, reflecting a 64 per cent quarter-on-quarter drop. This was one of the worst performing quarters in the last three years.

[mr funny]

[Unregistered]

Soon they will start selling ..then you can by cheap cheap
swee swee

[Unregistered]

Siao, they sell cheap cheap and go back to rent high high?

Soon they will start selling ..then you can by cheap cheap
swee swee

[Unregistered]

Soon they will start selling ..then you can by cheap cheap
swee swee

Yes,lor why everyone so naive to think that they are smart to buy cheap cheap but foreigners are stupid to sell cheap cheap below cost.

[Unregistered]

Where got ppl still want to sell right now? Everbody is starting to buy already. Check out what GIC is doing right now. Buy, buy, ...buy!

Ppty prices in Singapore is rock bottom already.

[Unregistered]

Soon they will start selling ..then you can by cheap cheap
swee swee

These foreigners are buying for own stay. They need a roof over their heads. They are not speculators. Why should they sell their properties? Then where they stay?

There are a lot of people migrating to Singapore.

Quote ChannelNewsAsia 27 February 2008: "Last year, Singapore saw over 63,000 new PRs, an 11-per-cent increase from 2006; and the city-state also welcomed more than 17,000 new citizens, a 30-per-cent jump."

So total there are 80,000 people new people seeking housing every year. Many of these are professionals who have a high income looking for private properties. Even if 10% of them buy private properties (while the other 90% buy HDB - similar to Singaporeans' ratio), that's 8000 units.

This year 2008 the number of private housing getting T.O.P is only around 6000 and next year 10000. Where got enough? Singaporeans no need to buy properties meh?

That's why a lot of them ended up renting, causing the rental market to shoot up.

[Unregistered]

Continuing my post above about immigration to Singapore. Nowadays there are many very high profile immigrants.

People come here because Singapore is well-known for being a safe and clean place. These people come for a range of factors like their children's education, avoiding pollution or escaping assassination.

Below are three examples:

Fortune Magazine Interview with Investment Legend Jim Rogers (24 Dec 2007)

Co-founder, along with George Soros, of the Quantum Fund, and creator of the Rogers International Commodities Index (RICI).

Q: Why move to Singapore and not Shanghai or Beijing?

A: Well, we would like to move to China, but the air is so terrible, the pollution is so bad, that we can't bring ourselves to do it. Everything works in Singapore. It's an astonishing place. It's got the best education system in the world. It's got the best health care in the world. And it's Chinese-speaking. Our 4-year-old daughter, Happy, goes to a school where they only speak Chinese. One of our motivations was that she continue to speak Chinese. It may not be as exciting as Shanghai or New York, but it's exciting enough for me.

Asianbite Daily News 14 Jan 2008

Actor Jet Li secretly moved to Singapore last year for his daughters’ education, reported Hong Kong’s Next Magazine recently. “He always says he lives in Shanghai but actually, because of his daughters, he moved to Singapore last year,” it quoted a source as saying.

The magazine said that Li arranged for Jane and Jade, his daughters with his former actress wife Nina Li Chi, to attend Paterson Road’s Overseas Family School and that he bought a S$7mil unit at nearby Ardmore Park condominium.

Forbes Singapore's 40 Richest

#13 Sudhir Gupta

Age 47
Net Worth $320 million
Married 2 children

Born in India, moved to Russia to get Ph.D. in agricultural chemistry. Started tire company in Moscow and acquired Dutch company to form Amtel-Vredestein. Listed the tiremaker on London Stock Exchange last year. Escaped assassination attempt in Moscow 4 years ago; now shuttles between that city and Singapore, where he's a citizen.

Late last year, Dr Gupta snapped up 22 apartments, including the 63rd-storey penthouse, in the second tower of The Sail @ Marina Bay condo.

[Unregistered]

Continuing my post above about immigration to Singapore. Nowadays there are many very high profile immigrants.

People come here because Singapore is well-known for being a safe and clean place. These people come for a range of factors like their children's education, avoiding pollution or escaping assassination.

Below are three examples:

Fortune Magazine Interview with Investment Legend Jim Rogers (24 Dec 2007)

Co-founder, along with George Soros, of the Quantum Fund, and creator of the Rogers International Commodities Index (RICI).

Q: Why move to Singapore and not Shanghai or Beijing?

A: Well, we would like to move to China, but the air is so terrible, the pollution is so bad, that we can't bring ourselves to do it. Everything works in Singapore. It's an astonishing place. It's got the best education system in the world. It's got the best health care in the world. And it's Chinese-speaking. Our 4-year-old daughter, Happy, goes to a school where they only speak Chinese. One of our motivations was that she continue to speak Chinese. It may not be as exciting as Shanghai or New York, but it's exciting enough for me.

Asianbite Daily News 14 Jan 2008

Actor Jet Li secretly moved to Singapore last year for his daughters’ education, reported Hong Kong’s Next Magazine recently. “He always says he lives in Shanghai but actually, because of his daughters, he moved to Singapore last year,” it quoted a source as saying.

The magazine said that Li arranged for Jane and Jade, his daughters with his former actress wife Nina Li Chi, to attend Paterson Road’s Overseas Family School and that he bought a S$7mil unit at nearby Ardmore Park condominium.

Forbes Singapore's 40 Richest

#13 Sudhir Gupta

Age 47
Net Worth $320 million
Married 2 children

Born in India, moved to Russia to get Ph.D. in agricultural chemistry. Started tire company in Moscow and acquired Dutch company to form Amtel-Vredestein. Listed the tiremaker on London Stock Exchange last year. Escaped assassination attempt in Moscow 4 years ago; now shuttles between that city and Singapore, where he's a citizen.

Late last year, Dr Gupta snapped up 22 apartments, including the 63rd-storey penthouse, in the second tower of The Sail @ Marina Bay condo.

don't worry, as long as we work hard, do our job everyday, more high net worth people will come, they see the value.
Where in Asia to find world class education, health, environment, infrastructure, wealth management, security, legal system, beautiful, clean, gracious, bi-lingual....
we will see more sport & luxury cars, more biz setup....
It just in front of us, depend whether you can see it....

[Unregistered]

Where got ppl still want to sell right now? Everbody is starting to buy already. Check out what GIC is doing right now. Buy, buy, ...buy!

Ppty prices in Singapore is rock bottom already.

why sell? just re-finance to lower loan rate at 1-2% for 1st 2 years, rent it out at 4-5% yield, lock in for 2 years, wait for IR to start, the influx of FT & immigrants will be very high. By then, what US recession, credit....all gone, market will be hot, then decide to hold on for real long term for real big return, property is a real good hedge for inflation & time.

[Unregistered]

Yes,lor why everyone so naive to think that they are smart to buy cheap cheap but foreigners are stupid to sell cheap cheap below cost.

foreigners stupid? sporean smart? time will tell.
Foreigners have seen the world much more than sporean, they have stayed in many countries before spore, they know where is the value.
They buy also good for spore economy, bank will get more biz on loan, housing agent, tax, legal fee....
We always heard our bank is too smart, each of them make S$2-3Bil/yearly, they are regional bank, going to be global bank soon. Are they so stupid to offer 0-2% housing loan rate for 1st 3 years? if they think property is going to crash, why do they take so much risk to offer so low rate & sit on the problem later?

[Unregistered]

Foreigners snapped up the homes in 2007. At this time, no one is buying.

If banks think that properties are so safe, they would have bought the units themselves instead of lending at such low rates. By lending with stringent conditions to very credit-worthy customers, they feel safer.

[Unregistered]

foreigners stupid? sporean smart? time will tell.
Foreigners have seen the world much more than sporean, they have stayed in many countries before spore, they know where is the value.
They buy also good for spore economy, bank will get more biz on loan, housing agent, tax, legal fee....
We always heard our bank is too smart, each of them make S$2-3Bil/yearly, they are regional bank, going to be global bank soon. Are they so stupid to offer 0-2% housing loan rate for 1st 3 years? if they think property is going to crash, why do they take so much risk to offer so low rate & sit on the problem later?

Don't be confused. Bank is definitely not stupid. The reason they want to lend you cheap because they know ppty value will hold. Only sour grapes who bark that pricing will drop.

[Unregistered]

Next month is beginning of Q2, let see next month we can see sign of recovery for US economy, then we will know where is the direction of Spore property.
We will see a fall in oil price starting next month with more refinery put into operation.


US economy to recover in second quarter: Treasury
Thu, Mar 13, 2008
AFP




PARIS, FRANCE - THE US economy should pick up in the second quarter of the year but currently faces a difficult period of financial market stress and high oil prices, the number two in the US Treasury said on Thursday.

'The economy is likely to improve in the second quarter,' US Deputy Treasury Secretary Robert Kimmitt told a press conference at the US embassy.

He added: 'There is no doubt we are facing significant headwinds in the US economy,' referring to the housing and credit market problems and high commodity and oil prices.


'We continue to believe that the long-term fundamentals of the US economy are strong.'

Mr Kimmitt spoke in Paris as global stock markets fell sharply due to further weakness of the dollar, fears about recession in the United States and news that a giant investment fund had defaulted on debt of nearly US$17 billion (S$23.6 billion). -- AFP

[Unregistered]

Foreigners snapped up the homes in 2007. At this time, no one is buying.

If banks think that properties are so safe, they would have bought the units themselves instead of lending at such low rates. By lending with stringent conditions to very credit-worthy customers, they feel safer.

Banks' business is to loan and not buy properties, in case you don't know.

[Unregistered]

Foreigners snapped up the homes in 2007. At this time, no one is buying.

If banks think that properties are so safe, they would have bought the units themselves instead of lending at such low rates. By lending with stringent conditions to very credit-worthy customers, they feel safer.

Banks' business is to loan and not buy properties, in case you don't know.

That's why I said in one of my previous postings that sour grapes don't seem to be very knowledgeable people.

When I first came to this forum, I was so shocked that one sour grape confused the development known as "The Bayshore" with "Bayshore Park" and confidently declared that no developer will buy Bayshore Park en bloc because it's sea view is blocked by Costa Del Sol.

Then recently another sour grape didn't know that it is the usual market practice for bulk property purchases to be done at a discount to individual transactions, whether in boom time or otherwise, and declared that prices have soften.

That's the typical behaviour of sour grapes. They know nothing about the private property market but talk as though they're experts. Then when you point out their mistakes, they go crazy and start posting rubbish and then go Woohahahaha ...

I suggest the forum admin create another website www.hdbsingapore.com specially for the sour grapes, though last I checked this domain had already been bought.

[Unregistered]

sour grape eater are simply just fools!!!

dun know anything but want to act like expert

go back to school lar!!!

[Unregistered]

That's why I said in one of my previous postings that sour grapes don't seem to be very knowledgeable people.

When I first came to this forum, I was so shocked that one sour grape confused the development known as "The Bayshore" with "Bayshore Park" and confidently declared that no developer will buy Bayshore Park en bloc because it's sea view is blocked by Costa Del Sol.

Then recently another sour grape didn't know that it is the usual market practice for bulk property purchases to be done at a discount to individual transactions, whether in boom time or otherwise, and declared that prices have soften.

That's the typical behaviour of sour grapes. They know nothing about the private property market but talk as though they're experts. Then when you point out their mistakes, they go crazy and start posting rubbish and then go Woohahahaha ...

I suggest the forum admin create another website www.hdbsingapore.com specially for the sour grapes, though last I checked this domain had already been bought.

This is funny but agree.
They should focus in their income stream instead of wasting time to be sour grape, red eyes, petty here.....
Jealous & envy is very bad for health too, take care.

[Unregistered]

Relax people. We should open up to the foreigners lah.

[Unregistered]

Relax people. We should open up to the foreigners lah.

Yes, yes, agree, agree.

[Unregistered]

Relax people. We should open up to the foreigners lah.

Yes, yes, agree, agree.

Like that cheong liao lor!

[Unregistered]

don't worry, as long as we work hard, do our job everyday, more high net worth people will come, they see the value.
Where in Asia to find world class education, health, environment, infrastructure, wealth management, security, legal system, beautiful, clean, gracious, bi-lingual....
we will see more sport & luxury cars, more biz setup....
It just in front of us, depend whether you can see it....

Fedup! Anybody driving Porsche, Merc, BMW, Audi, etc. in my building.

[Unregistered]

Fedup! Anybody driving Porsche, Merc, BMW, Audi, etc. in my building.

Don't be. You will have your chance.

[Unregistered]

Peaked Peaked Peaked
Analysts say it has peaked
Desperate flippers get freaked
Because they realised that the news has leaked
Now on to the exits as fast as they could bolt
Beacuse no question of their units ever being sold
Mayhem all over as they rush
Fellow flippers will they crush?
Thud Thud Thud Splash Splash Splash
It is all over in a flash

[Unregistered]

Peaked Peaked Peaked
Analysts say it has peaked
Desperate flippers get freaked
Because they realised that the news has leaked
Now on to the exits as fast as they could bolt
Beacuse no question of their units ever being sold
Mayhem all over as they rush
Fellow flippers will they crush?
Thud Thud Thud Splash Splash Splash
It is all over in a flash

YES YES I SAW THE RUSH. THOUGHT IT WAS DRIVERS TRYING TO BEAT THE ERP TIME .....BUT NOOOOO WAS SPECULATORS FLEEING AS FAST AS THEY COULD.

[Unregistered]

YES YES I SAW THE RUSH. THOUGHT IT WAS DRIVERS TRYING TO BEAT THE ERP TIME .....BUT NOOOOO WAS SPECULATORS FLEEING AS FAST AS THEY COULD.

Bro, u will be utterly disappointed as speculators have long gone and now left with sellers who all have holding power. If not, you will probably see -4.2% and not +4.2%. Thats why buyers are all so frustrated going in and out of condos every weekend looking for bargain hunting. They just cannot find desperate sellers becos there are none out there.

[Unregistered]

Bro, u will be utterly disappointed as speculators have long gone and now left with sellers who all have holding power. If not, you will probably see -4.2% and not +4.2%. Thats why buyers are all so frustrated going in and out of condos every weekend looking for bargain hunting. They just cannot find desperate sellers becos there are none out there.

Analysts say private home sales have peaked

By Ng Baoying, Channel NewsAsia | Posted: 07 April 2008 2347 hrs


SINGAPORE: Sales of private properties have been sliding amid a standoff between buyers and sellers, say market watchers.

In February, sales for new launches were only one tenth of the record numbers seen in August last year......................................................

Last year, property launches drew a crowd despite the extravagant price tags. But now, the market is paying for it in more ways than one. Prices are coming off their highs, leaving some buyers with significant losses........

................................................................

While URA flash estimates showed private property prices increased 4.2 per cent in the first quarter, the rise was only for a handful of properties.

...................................................................................

Oh the 4.2% deceives some speculators........

[Unregistered]

Oh the 4.2% deceives some speculators........

Oh now I am englightened, dun know what other excuses these speculators will give next? They have been boasting on this 4.2% increase thru'out this forum since the flash estimates were shown last week. Tell them to wait until the actual figures announce they refuse to listen, just like when they buy properties, anyhow jump into conclusion that it will definitely appreciate, buy already now stuck!!!

[Unregistered]

Oh now I am englightened, dun know what other excuses these speculators will give next? They have been boasting on this 4.2% increase thru'out this forum since the flash estimates were shown last week. Tell them to wait until the actual figures announce they refuse to listen, just like when they buy properties, anyhow jump into conclusion that it will definitely appreciate, buy already now stuck!!!

You seem to be pretty "concerned" about the welfare of the speculators.

Are you more "concerned" because speculators are your beloved children, or more "concerned" that the URA index went up 6.8% in Q4 2007 and another 4.2% in Q1 2008?

[Unregistered]

The property market still very healthy wat ...

Got 4,200 home loans approved in January, only 21% below the "peak of 5,319 last August".

Unlike what the sour grapes here kept saying "No Buyers".

Furthermore, there is a 'a pick-up in market activity at the end of March'.

Looks like the property market will bury the sour grapes yet again.

HEALTHY HEALTHY HEALTHY
SCREAMS THE NOT SO WEALTHY
SAYS CRASHED BY 21% ONLY
SOMETIMES THE MORONS ARE VERY FUNNY
THE WISE SAY NO BUYERS ALREADY
AND MARKET GOING DOWN UNDER VERILY
SITUATION BY THE DAY GETTING MORE DEADLY
FINALLY...MORONS WILL DIE SCREAMING HEALTHY HEALTHY HEALTHY
BECAUSE UNITS OUT THERE WITH NO BUYERS IN PLENTY!!!