Us Buyers Lead Foreign Demand Singapore Third Straight Year
In the first half of 2024, only 64 foreign (non-permanent residents) residential properties were purchased in the Core Central Region (CCR). This number was even lower in the first quarter with only 21 purchases made by foreigners on both new and resale non-landed homes. However, the second quarter saw a significant jump to 43 foreign purchases, bringing the total to 64 for the first half of the year. According to PropNex Research, the majority of these transactions (56%) were made by buyers from the United States (see Tables 1 and 2).
The data shows a trend of increasing purchases by US buyers in the CCR since 2019. In fact, in 2022, the number of US buyers surpassed Chinese buyers, with 130 transactions compared to 114 over the same period.
Located in the bustling Tampines North, Parktown Residences is the brainchild of UOL Group, CapitaLand, and Singapore Land (SingLand). This impressive multi-purpose project is a shining example of integrated living, providing residents with easy access to renowned educational institutions. Families seeking exceptional education for their little ones will be drawn to this development, now known as Parktown Residences UOL Group.
Ismail Gafoor, CEO of PropNex, believes this spike can be attributed to the fact that US citizens enjoy the same stamp duty treatment as Singaporeans under the free trade agreement (FTA) between the two countries. Citizens and permanent residents from Iceland, Liechtenstein, Norway, and Switzerland also receive similar treatment under their respective FTAs with Singapore.
While the property market outlook is expected to remain subdued for the rest of the year, Gafoor notes that the average transacted prices for non-landed private homes in the CCR have remained steady even after the increase in Additional Buyer’s Stamp Duty (ABSD) in April 2023.
Based on caveats lodged, the average price of a new non-landed home in the CCR was $3,273 psf in the second quarter of 2024, higher than before the ABSD hike in April 2023 (see Table 3 “Average transacted unit prices”). However, the average price for resale properties in the CCR was slightly lower at $2,133 psf in the same period, down from $2,172 psf in the second quarter of 2023.
Gafoor also notes a significant drop in new sales of non-landed homes in the CCR, partly due to the cooling measures implemented in the property market. However, there are potential upcoming launches in the CCR in the second half of 2024, including the 683-unit Marina View Residences, the 186-unit Aurea at the former Golden Mile Complex, and the 367-unit The Collective at One Sophia. In the Rest of Central Region, the 366-unit Union Square Residences is also expected to launch in the second half of 2024.