Buying sentiment within the Singapore residential market cooled in the second quarter this year, according to a report released by DTZ Research.
Market activity within the private residential market recovered early in Q2 but slowed in mid-quarter due to increased land supply from the GLS programme, local stock market jitters and uncertainty in European sovereign debts.
Transactions of luxury homes increased in Q2, with the share of purchases for units with a price of at least S$3 million climbing to 10 percent, up from 9 percent in the earlier quarter. Most of these transactions were seen in the prime districts of 9, 10 and 11.
Non-landed sub-sales were 10 percent of the total non-landed transactions in Q2, down from 13 percent in the earlier quarter. The decline was attributed to the implementation of the seller’s stamp duty, as well as more subdued sentiments in May and June.
The DTZ report also said that 33 percent of private units transacted in Q2 involved those with public housing addresses. This seems to have stabilised at around the 34 percent to 36 percent mark for the previous three quarters.
The percentage of buyers with public housing addresses who purchased units worth more than $1 million reached 43 percent in Q2, up from 36 percent in Q1, while buyers with private addresses who acquired units above S$1 million hit 73 percent from 69 percent in the earlier quarter.
Singaporean’s share of private home purchases rose from 71 percent in Q1 to 74 percent in Q2, while Singapore Permanent Resident (SPR) buyers’ share declined to 13 percent of total private home purchasers.
Foreigners’ share of total purchases in Q2 remained at 11 percent as they stayed cautious because of the sluggish economic growth in Europe and in the US.
For private residential homes worth about S$500,000, Singaporeans’ share declined from 89 percent in Q1 to 79 percent in Q2, while SPRs constituted 17 percent.
Non-Singaporean buyers from the top four nations, Malaysia, Indonesia, China and India, were largely unchanged, making up 69 percent of total transactions by foreigners and SPRs in Q2. Malaysians still dominated the four groups, contributing 22 percent of total transactions by non-Singaporeans, unchanged from the previous quarter.
Mainland Chinese purchasers are closing in on surpassing Indonesians as the second highest non-Singaporean buyers in the second quarter, accounting for 17 percent of non-Singaporean purchasers in Q2, slightly down from 18 percent in the previous quarter. Indonesians made up 18 percent of all non-Singaporean buyers, unchanged from Q1.