Singapore Property: During the second quarter this year, the private residential business greatly improved in Singapore. According to the reports, the market increased by more than 47 percent selling as much as 3,867 units during the said period. Moreover, foreign buyers also intensified by more than 60 percent as developers sold as 1,025 units. But despite these figures, experts said that this may be a brief trend due to several factors such as the deflation of renminbi and the slow down on China’s economy.
As China’s economy moves south, it also affects the currencies of its exporters particularly the businesses from Malaysia and Indonesia. The latter’s currency weakened by as much as 3.4% and 1 SG dollar is now equivalent to 769 Indonesian rupiah. On the other hand, Malaysian ringgit is now equivalent to 3.05 per one Singaporean dollar. As a result, the number foreign buyers from Indonesia, Malaysia and China declined significantly.
Recent reports revealed that more than half of the foreign property purchases were accounted from the said nationalities. Thus, the private homes market may experience a big drop in sales since the price will soon become more expensive for them to buy. During the sluggish economic phase in Indonesia, the home sales also weakened by as much as 34 percent.
Though these are the given factors for a possible decline, experts said that many foreign buyers do not consider the volatility of their exchange rates or the cost of these homes in Singapore. Most of them were attracted to get an investment in the country like the Thomson Impressions or the Principal Garden because of the economic stability that Singapore has. However, there might be some delays for these purchases. It can be quite difficult to remit renminbi to Singapore and one must wait a couple of days before receiving the money especially if it is in huge amount.
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