Despite tougher immigration laws and rising property prices, mainland Chinese buyers’ interest in Singapore properties remains relatively strong, according to developers and agents.
Mainland Chinese have become the leading foreign property buyers in Singapore, which is perceived as a good investment ground amid fears of another global recession.
“A strong, stable Singapore dollar appeals to these Chinese buyers as they seek to diversify their funds. The absence of capital gains tax and plentiful property information available also appeals to them,” said Png Poh Soon, Research Head at Knight Frank.
In the second quarter of this year, the number of private property transactions closed by foreigners and permanent residents (PRs) comprised 30 percent of all private home sales in Singapore, said a DTZ report.
Mainland Chinese accounted for 26 percent of these purchases, followed by Indonesians and Malaysians.
Given this scenario, many Singaporean developers and agents are heading to China to lure well-heeled investors, coming up with innovative ways to make their potential buyers feel special.
For example, Singapore players have held property talks at monthly “Wealth Enhancement Seminars” at five-star hotels.
To attract participants, property agents have sent out mass text messages promising “15 percent discounts on Singapore property; first three people to sign up for seminar will get free round-trip airfare to Singapore!”
Agents also rely on property-viewing tours to attract Chinese investors. Developers such as CapitaLand and Far East Organization (FEO) usually organise three-day trips once or twice a month.
Tour groups, which come from major cities like Shanghai and Beijing but often include wealthy families from smaller cities, normally comprise 10 to 15 people.
“We intentionally keep the group small to ensure more personalised service,” said a CapitaLand spokesman.
Tour participants pay for their own accommodation and airfare. The developers, however, can sponsor those who put a down payment on a property, according to Eric Chau of Colliers International in Beijing.
This promotion seems to have led to a good number of purchases, although developers have declined to disclose any numbers.
In addition, some developers are setting up offices in China to get closer to potential mainland buyers.
Meanwhile, OrangeTee plans to set up a Shanghai office and has partnered with China’s leading online property portal Soufun to manage its queries on Singapore real estate purchases.
“This is a good time to set up our own office in China. We see an opportunity to serve Chinese customers who are looking overseas now that they are restricted from buying more than two properties in China, due to government rules introduced this year to cool the property market,” said Steven Tan, Executive Director at OrangeTee.
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