In April, more than 19% of private homes that cost more than $5 million each unit were sold to foreign investors. And these are not just simple units but luxury residential properties in the country. The figure said is accounted for the six percent increase for 2015’s first quarter sales. This report was according to the data given by URA Realis as analyzed by the DTZ, a top real estate adviser known internationally.
In general, however, the transactions in the real estate market are still lower than expected. But in time, they are optimistic that the volume will increase as more investors, particularly foreign, close the deal.
In a statement made by DTZ’s associate director, they noticed that more and more foreigners are lured in to buy luxury properties in Singapore compared to the typical units sold by agents. While others think that the increase in stamp duties would drive off these buyers, foreign investors didn’t mind at all. As a matter of fact, they are more attracted to the transparency when getting a property in Singapore. They also consider units that are worth their money regardless of its high price.
The senior director of Savills Residential also agreed. George Tan said in an interview that most of the buyers today are Chinese buyers who are considered as permanent residents in Singapore and most of them choose the high-end units in prime locations as well. These foreign investors admitted that they also looked at Hong Kong as another option to take their investments. Both countries have great cooling measures when it comes to real estate. But these buyers opt to buy in Singapore instead because of the decline in prices compared to the prices of the properties offered in Hong Kong. Thus, they believe that SG investments are more practical and give higher value in the end.