The latest on Singapore property news states that demand for properties in Singapore is still up among foreign investors.
According to Mr. Ong Teck Hui, national director of research and consultancy of JLL Singapore, the reason why foreigners are still buying Singapore property is because of its long-term capital gain.
A few of the Singapore apartments available for property investment
China leading foreign investors in Singapore property sales from January to September 2016
Among foreign countries interested in Singapore property as a property investment, 29.4% of all foreign transactions in the first nine months of 2016 came from China. Although China dominates Malaysia, Indonesia and United States as the top foreign buyers of Singapore properties, this figure is lower than last year’s transaction. In 2015, there were 243 transactions from China while there are 230 this year.
Source: URA Realis, JLL Research
JLL’s research found that Chinese buyers prefer a Singapore condo located in residential areas, compared to Indonesians and Malays’ preference of purchasing a Singapore property in the core central region that has a freehold tenure agreement.
JLL also noted that the increase in transaction from the US buyers is because of their exemption from additional buyer’s stamp duty (ABSD), under a free trade agreement.
Foreign buyers have been subjected to an additional 10% from the property’s purchase price since December 2011. A 15% increase in tax was made official in January 2013, limiting the demand of Singapore condos. Despite this fact, the Government says that ABSD is inevitable to sustain the property market. Mr. Ong noted that other foreign investors have become accustomed to this measure and the prices of Singapore properties will attract more foreign buyers.
Mr. Ong notedthat “as they become more accepting of the cooling measures and prices remain favourable, we may expect to see the gradual return of foreign buyers.”
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