In Singapore, foreign purchasing of private residences increased in Q2, but has not regained full force with regard to its share in higher-priced transactions, based on DTZ’s caveats analysis. The quarter predicts a revitalisation of purchases by Indonesians, who are the leading buyers in the upper-level segments.
Foreigners, except for permanent residents in Singapore, only consist of 15 percent of those who purchased private houses, amounting to more than $1,110 per square foot in Q2 2009. The figure is lower than the share of 29 percent in 2006 as the property market started to heat up.
As for absolute price quantums, transactions of non-permanent foreign residents make up 14 percent of the total purchases at more than $1.5 million in Q2 2009, which is significantly below the 20 percent total in 2006.
“The profile of foreigners has changed gradually over time. They are increasingly moving to mid-tier homes located at the city fringes,” DTZ said.
Peter Ow, executive director at Knight Frank, stated that the trend is due to some city-fringe projects recently launched in several sites such as Holland Road and Novena at prices which foreign purchasers find attractive.
”Their prices are about 30-40 per cent lower than prime Orchard Road properties with similar-quality finishes. And most of these projects are near MRT stations and often 10 minutes’ drive to Orchard Road,” he added.
DTZ’s analysis reveals that houses in the main districts of 9, 10 and 11, and district 15 as well, accounted for 47 percent of the entire private homes purchased by non-PR foreign buyers in Q2, which is lower than the 62 percent share in 2006.
The total number of private homes acquired by both permanent residents and non-permanent foreign residents tripled from Q1’s 497 units to Q2’s 1,678 units.
The most preferred projects among the non-permanent foreign residents in Q2 were Rivergate, with a total of 33 purchases; The Arte, with 31 purchases; Martin Place Residences, with 26 units; and The Lakeshore, with 23 units.
Permanent residents preferred Martin Place Residences, The Arte, The Lakeshore, Melville Park and Mi Casa.
A huge resurgence occurred in the second quarter among Indonesian purchasing. They picked 349 units in Q2, about five times the 70 homes they purchased in Q1. Because of this, Indonesians accounted for 21 percent of private units bought by PRs and foreigners, significantly up from the 14 percent share in Q1.
However, they only ranked 2nd to Malaysians, who acquired the lion’s share or 29 percent of buys by PRs and foreigners. In addition, Indian citizens accounted for 12 percent while the Chinese accounted for 15 percent.