As we approach the end of 1st quarter in 2017, let us reflect and take a look on the property market in the upcoming months.
2016 wasn’t a year for where you can say the property market was good, in fact the private residential property sentiments was merely lukewarm. However, we want to highlight that it was also a year where we saw an increased amount of property buyers from overseas. This led us to think – Could see more of these foreign property buyers coming back to Singapore?
By the year of 2015, we saw most foreign buyers leaving the property market in Singapore. The total number of foreign buyers who bought non-landed private homes in 2012, but since then, the nos. steadily declined to only 894 in 2015.
Why are we seeing such buying interests coming back?
Lets not talk about the the better sales volume we are seeing since 2015, it can be said that the buying habits of foreign property buyers has also changed over this period of time. Based on what we observed, it is no longer just about purchasing the best – i.e the most luxurious or high-end properties in the market. We see an increased interest shifting towards value for money purchases with the example of Cairnhill Nine & Sturdee Residences and also developments with upcoming MRT like The Line @ Tanjong Rhu (Katong Park MRT).
Foreigner property buyers increased from 894 in 2015, to 1,067 private residential purchases in 2016 for these non-landed residential property purchases not to the mention the hefty Additional Buyers’ Stamp Duty (ABSD) they needed to fork out – the reason for the decline since 2012. For the Singaporean Permanent Residents, their numbers declined drastically ever since the introduction of cooling measures in 2013. Overall, the number Singaporean Permanent Residents (SPR) buyers is also seeing an increase – reflecting continued confidences for the private residential market in Singapore.
Typically, most Singaporean Permanent Residents (SPR) purchases are in suburbans or lower-cost choices compared with foreign buyers – less impact by the Additional Buyers’ Stamp Duty (ABSD). Recently, there is a growing trend on these buyers looking into further locations (suburbs) or choosing relative smaller sized private residential developments.
Better buying confidence in 2017.
It widely expected that private residential property prices will remain stable in 2017. They are also expected to stabilise and we probably can expect foreign buyer interest to continue like 2016. It is also unlikely that foreign buyers will probably rush in the market because our cooling measures like the Additional Buyers’ Stamp Duty (ABSD) are set to stay. On the other hand, buying interests of most Singaporean Permanent Residents (SPR) will continue to be resilient moving from 2017 coupled by developments such as the future completion of the High Speed Rail (HSR) line, which will boost connectivity and accessibility for Malaysia and Singapore.