The number of mainland Chinese and Malaysian buyers of private homes in Singapore shot up in the second quarter of this year from Q1, reported The Straits Times citing DTZ Research.
Home purchases by Malaysians increased the most at 53 percent quarter-on-quarter to 248 units. On the other hand, Chinese buyers bought 234 units.
Overall, buyers from both countries accounted for almost 50 percent of the 1,017 purchases by non-Singaporeans in Q2.
“This increased activity coincided with heightened economic uncertainty in China and political concerns in Malaysia,” said the real estate consultancy.
DTZ regional head Lee Nai Jia noted that while the number of Malaysian buyers had been expected to drop with the fall of the ringgit, the opposite occurred.
“I think all the political issues in Malaysia has hindered some of the structural reforms that were supposed to take place. That has become a concern among Malaysian buyers, moving them towards Singapore.
“They want to make sure that their money and their wealth is intact and doesn’t depreciate further,” he added.
As for Chinese buyers, Lee believes the stock market plunge in China probably spooked investors, raising doubts about the country’s financial security and stability, and causing them to see Singapore as a safe haven.
Looking ahead, DTZ expects the devaluation of the yuan to drive more high-net-worth individuals to acquire property in the city-state, while those whose wealth have been affected by China’s stock market rout will likely stay away.
It remains to be seen if the rise in Malaysian purchases will continue, said Lee, adding that Malaysians “continue to form one of the main non-Singaporean buyers, especially in the prime district”.
Romesh Navaratnarajah, Singapore Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
