Private home transactions for both new and resale homes surged more than 130 percent in 2009, despite the economic downturn. Singaporeans were likely the main drivers for the increase. An increase of about 144 percent or 23,516 private home transactions were made by Singaporeans last year, compared to 9,649 in 2008.
Singaporean purchases also rose by 159 percent in the non-landed segment and an 83 percent increase in landed property purchases.
And because of the lower property prices in the country due to the credit crunch, the attractiveness of Singapore property and the influx of expatriates also led to more foreign purchases.
The number of transactions made by both foreigners and PRs has increased by 114 percent to 6,798 in 2009, compared with 3,176 transactions in 2008. This increase was attributed in the non-landed segment, which rose 118 percent from 3,036 purchases in 2008 to 6,610 in 2009.
Additionally, landed property also recorded a year-on-year increase of 34 percent.
According to the figures from URA and DTZ Research, in terms of overall private home purchases, Singaporeans accounted for 76 percent of all the transactions. Foreigners, including PRs recorded about 22 percent of all the purchases, and the rest going to companies and other transactions.
Among the foreigners, Malaysians, Indians, Indonesians and Chinese nationals were among those active in the real estate market.
Indians and Chinese nationals have shown a great increase in transactions. In 1999, these two foreign nationals made up 6.6 percent of the total transactions made by foreigners and PRs, and this largely grew to 27.9 percent in 2009.
Experts noted that the increasing number of foreign purchases could also be attributed by the attractiveness of home prices here compared with cities like Tokyo and Hong Kong.
“The opening of the integrated resort and the strength, resilience and stability of Singapore’s economy during the recent downturn could also be plus points,” said Ms. Christine Sun, senior manager of research and consultancy at Savills Singapore.
She added that the property boost came despite a poor economy. “The market sentiment in the earlier part of 2009 was rather bullish. Many locals were buying due to pent-up demand, and PRs and foreigners could have ridden on the positive market sentiment and bought in as well.”
Mr. Jeffrey Hong, executive director at HSR Property Group, also stressed that another reason for the transaction growth was simply the number of foreigners present in Singapore.
Based on the latest figures released by the Department of Statistics, the number of foreigners and PRs in Singapore in 2009 reached 1.25 million and 533,200, respectively, from 449,200 PRs and one million foreigners in 2007.