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Thread: Rising tide of foreigners snapping up S'pore property

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    Default Rising tide of foreigners snapping up S'pore property

    Published March 27, 2008

    Rising tide of foreigners snapping up S'pore property

    S'poreans buying more private homes but their share is still falling as foreigners outpace them

    By KALPANA RASHIWALA


    (SINGAPORE) Take a walk down some of the poshest parts of Singapore and your eyes will confirm precisely what the numbers say. With its immigration-friendly policies and its growing attraction for wealthy individuals across the world, Singapore is seeing more foreigners than ever before parking their funds in private property here - especially in the Core Central Region (CCR).

    Singaporeans, too, are buying more private property but, in relative terms, their share is dwindling because of the foreign influx.

    Result: From a 77 per cent share in the purchases of private apartments and condo units here in 2000, Singaporeans have seen their slice drop to 63 per cent in 2007, according to a study by Jones Lang LaSalle. This is their lowest share since 1995, which is as far back as the caveats captured by Urban Redevelopment Authority's Realis system go.

    Conversely, foreigners (including permanent residents) accounted for 29 per cent of non-landed private homes purchased here last year - nearly double their 16 per cent share seven years earlier and also their highest ever.

    Companies account for the remaining purchases.

    Market watchers expect the trend to continue in the mid- to long-term. 'We need the external talent to support Singapore's economic growth in the long term, as the citizen population has not been replacing itself sufficiently,' says JLL's head of research (SE Asia) Chua Yang Liang.

    JLL's study shows the trend of declining ratio of Singaporeans among non-landed private home buyers was most apparent in CCR - which has been a hotbed of purchases by foreign investors.

    Here, Singaporeans accounted for 47 per cent or less than half the caveats lodged for the purchase of non-landed private homes last year, while foreigners (including PRs) had a 41 per cent share, nearly double their 21 per cent share back in 2000, according to Jones Lang LaSalle's analysis.

    Foreigners who are not PRs have shot up the buying charts. They picked up 26 per cent of non-landed homes that changed hands in CCR last year, compared to their 11 per cent share seven years earlier. CCR includes the prime districts 9,10 and 11, Downtown Core location and Sentosa Cove.

    DTZ executive director Ong Choon Fah likens the luxury residential sector in CCR to Central London, with a high proportion of foreign ownership. 'We'll have to accept that Singapore will be open to international competition, with funds and high net-worth individuals coming in. People who cannot afford to live in these areas will have to find alternative locations,' Mrs Ong says.

    JLL's study showed that even in the Outside Central Region (which covers suburban locations and is a realm dominated by typical Singaporean home upgraders), the share of foreign buyers (including PRs) went up to 22 per cent last year from 13 per cent in 2000.

    In the Rest of Central Region, which covers the mid-tier market, foreigners' (including PRs') share increased from 18 per cent in 2000 to 29 per cent in 2007. The percentage of non-landed homes bought by Singaporeans in the area fell from 74 per cent in 2000 to 61 per cent last year.

    Jones Lang LaSalle analysis covered caveats lodged for the purchase of non-landed private homes in both primary and secondary markets (including subsales).

    Overall, the absolute number of such properties purchased by all categories of buyers has increased over seven years. The total caveats lodged for purchases of apartments/condos more than tripled, from 9,347 in 2000 to 30,576 last year. Even though Singaporeans bought more than they did in 2000, their share fell as purchases by foreigners saw higher percentage gains.

    Islandwide, the number of private apartments/con- dos bought by Singaporeans jumped 165 per cent from 7,225 units in 2000 to 19,154 units last year.

    Over the same period, the number of private apartments/condos bought by foreigners (counting PRs as well) leapt 496 per cent from 1,491 units in 2000 to 8,884 units in 2007.

    The increase was due partly to the influx of foreign talent into Singapore. 'As birth rate of the citizen population is below replacement level, in-migration has been necessary to sustain economic growth. As at end-2007, Singapore's total population stood at 4.588 million, with well over a million foreigners. This is a 33 per cent increase from the 750,000 foreigners as at-end 2000,' JLL says.


    Last edited by mr funny; 27-03-08 at 10:44.

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    Default Re: Rising tide of foreigners snapping up S'pore property

    Published March 27, 2008

    Foreigner factor in property here to stay

    Rising rents, influx of foreign talent set to spur demand for homes, say analysts

    By KALPANA RASHIWALA


    THE attraction to foreigners of buying a non-landed home in Singapore isn't expected to wane in the mid- to longer-term, say property experts.

    Jones Lang LaSalle's head of research (SE Asia) Chua Yang Liang expects the ratio of foreign buying to be maintained in the short term - because of sub-prime uncertainty - but to increase moderately in the medium to longer term.

    'A key factor is that residential rents have moved up quite a fair bit, and the low interest rate environment will encourage more foreigners and PRs (living here) to consider taking up home ownership,' he added. This, of course, is assuming that they can get loans.

    Another factor that will contribute to the trend is the government's policy of encouraging more immigration into Singapore to power the Republic's economic growth, say market watchers.

    Knight Frank executive director (residential) Peter Ow notes that non-PR foreign investors were last year a major buying force especially in the Core Central Region (CCR), drawn by the story of Singapore's transformation into a global city and its ambitions to be a hub in many fields - including financial, healthcare, education, R&D.

    'The implication is that Singapore's property prices, especially in CCR, will be more affected by events in the rest of the world such as the sub-prime crisis which is now unfolding.

    'But that's not necessarily a bad thing. If the situation worsens overseas and international investors view Singapore as a safe haven, that could draw more foreign funds to the local property market, especially in the CCR,' Mr Ow reckons.

    'Increasingly, we may see more foreigners who will be able to afford properties in CCR. That also explains why some high-end residential developers are feeling pretty confident that prices will not slide in the luxury tier, as demand is being supported by foreign investors looking for a place to park their monies,' Mr Ow said.

    A 12 percentage-point slide in Singaporean buyers' share of private apartments/condo purchases in the Outside Central Region - which covers mass-market suburban locations, the staple of Singaporean upgraders - between 2000 and 2007 revealed in JLL's study may have implications on that perpetual Singaporean dream - of upgrading to a private condo.

    'The authorities may have to ramp up supply of the high-end of public housing, like the Design, Build and Sell Scheme (DBSS), and executive condos (ECs) to cater to local home buyers,' Mr Ow suggests.

    ECs are condominium housing that have resale and other restrictions in the first 10 years, while DBSS are public housing flats designed, built and sold by private sector developers.

    DTZ executive director Ong Choon Fah also says these housing types will help meet the aspirations of Singaporeans who feel priced out of private housing. 'There's a right product for everybody. We must understand that in a global economy, there is open competition. We must embrace meritocracy. Anybody can buy the product if they can pay. To survive, Singapore must keep attracting the best.'


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    Default Re: Rising tide of foreigners snapping up S'pore property

    The government should increase the supply of the high-end HDB flats, like the DBSS flats, and also ECs to cater to locals.

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    Default Re: Rising tide of foreigners snapping up S'pore property

    Quote Originally Posted by Unregistered
    The government should increase the supply of the high-end HDB flats, like the DBSS flats, and also ECs to cater to locals.
    I thought they are already doing that?

  5. #5
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    Default Re: Rising tide of foreigners snapping up S'pore property

    Quote Originally Posted by Unregistered
    I thought they are already doing that?
    Not enough la.

  6. #6
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    Default Re: Rising tide of foreigners snapping up S'pore property

    Buy buy buy! Let them buy. We are open for business.

  7. #7
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    Default Re: Rising tide of foreigners snapping up S'pore property

    Quote Originally Posted by Unregistered
    Buy buy buy! Let them buy. We are open for business.
    wait they buy until you have no house to stay

  8. #8
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    Default Re: Rising tide of foreigners snapping up S'pore property

    Quote Originally Posted by Unregistered
    wait they buy until you have no house to stay
    They will have to buy from me what.

  9. #9
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    Default Re: Rising tide of foreigners snapping up S'pore property

    Quote Originally Posted by Unregistered
    They will have to buy from me what.
    That is provided you have bought.

  10. #10
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    Default Re: Rising tide of foreigners snapping up S'pore property

    Quote Originally Posted by Unregistered
    That is provided you have bought.
    That's why must buy.

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