Singapore’s property market has seen a surge in foreign interest over the past year, with foreign buyers accounting for a record-breaking 20.1% of transactions in the first quarter of 2021. This is the highest percentage of foreign buyers since the Urban Redevelopment Authority’s (URA) data series began in 2013.
Reasons Behind the Increase
Experts attribute this sudden increase to the strong economic recovery in Singapore and the government’s pro-business policies. Singapore’s economy is expected to grow by 7-9% this year, up from 2020’s 2.7%. This is due to the country’s successful handling of the COVID-19 pandemic and its fiscal and monetary stimulus measures.
Another factor is the attractive prices of residential properties in the country. Prices have been on the decline since 2013, and the government’s cooling measures have further reduced prices. This has made Singapore an attractive destination for foreign buyers looking for a good investment opportunity.
Foreign Buyers from Which Countries
The largest group of foreign buyers is from China, who accounted for 25.2% of the total foreign purchases in the first quarter of 2021. This is followed by Malaysia (18.9%) and India (6.8%). Other countries that have seen a significant increase in purchases include Indonesia, the US, and the UK.
Types of Properties Being Bought
The majority of foreign buyers are purchasing landed properties, such as terrace houses, semi-detached, and detached houses. These properties are attractive to foreign buyers as they are seen to be a safer investment option than other types of properties.
Outlook for the Property Market
The strong demand from foreign buyers is expected to continue in the coming months, as the economic recovery gains momentum. The government’s cooling measures are also expected to remain in place, which will ensure that prices remain attractive for foreign buyers.
Conclusion
The Singapore property market has seen a significant increase in foreign interest in recent months. This is due to the strong economic recovery in the country and the attractive prices of residential properties. The largest group of foreign buyers is from China, followed by Malaysia and India. The majority of them are purchasing landed properties, such as terrace houses, semi-detached, and detached houses. The strong demand from foreign buyers is expected to continue in the coming months, as the economic recovery gains momentum.