The number of foreigners buying bungalows in Sentosa Cove has increased, while other pricey locations in the city have experienced a decline.
The number of expats in Singapore who are purchasing bungalows in pricey locations in the city, including Districts 10, 11 and 21, fell last year, compared with the preceding year.
The number of detached houses purchased by foreigners in these three districts in the past year was generally much lower than in the 2006 and 2007, which were the peak years of foreign purchasing of Singapore property.
Meanwhile, in District 4 where Sentosa Cove is located, both the percentage share of bungalows purchased and the absolute number of bungalows bought by foreigners scaled fresh heights last year, according to CB Richard Ellis (CBRE).
Tan Tiong Cheng, Chairman of Knight Frank, attributed the divergent trends in foreigners purchasing upmarket bungalows in mainland Singapore against Sentosa Cove to the fact that fewer foreigners were awarded permanent resident (PR) status in the previous year, compared with 2009.
Last year, the government approved only 29,265 PR passes, less than half the 59,460 passes given out the year before. This represented the lowest PR intake in the last five years.
“One of the criteria for a foreigner to be granted approval to buy a landed home on mainland Singapore is that he or she has to be a Singapore PR (making adequate contribution to Singapore’s economy). And even those who are PRs may have faced stricter criteria in getting approval to buy landed homes last year,” Mr. Tan suggested.
Mr. Tan added that foreign purchasing at Sentosa Cove continued to strengthen because it is the only location in Singapore where foreigners who are not PRs are permitted to own a landed home.