Singapore Sees Lowest Foreign Buyers Since 2003

The consultants in analysing government data revealed that foreigners accounted for the purchase of 742 units last year, a level not seen since 671 units were sold to foreigners 17 years ago. The data takes into account new, sub-sale and second-hand apartments.

BY Realty Plus
Published - Tuesday, 02 Feb, 2021

Singapore Sees Lowest Foreign Buyers Since 2003

The consultants in analysing government data revealed that foreigners accounted for the purchase of 742 units last year, a level not seen since 671 units were sold to foreigners 17 years ago. The data takes into account new, sub-sale and second-hand apartments. Non-resident apartment purchases in 2020 accounted for just 4.1 per cent of total sales, the lowest in more than two decades. "For the luxury market, many buyers prefer to physically inspect the premises or visit a show-flat before making a purchase," said Christine Sun, senior vice-president of research and analytics at OrangeTee& Tie. "Last year, many overseas buyers were not able to travel to Singapore to view properties in person which may have resulted in a dip in foreign purchases." However, local buying interest more than made up for the difference as Singapore residents snapped up homes at a surprising rate considering the dismal economic and job situation. Singapore's GDP is estimated to have shrunk 5.8 per cent in 2020 with the unemployment rate in December at 3.2 per cent while the historic long-term unemployment rate in the island nation is below one percent. It was priced for non-landed properties (apartments and condominiums) in the Rest of the Central Region (RCR) that grew the fastest at 4.4 per cent in the fourth quarter of 2020 and not the Core Central Region (CCR) which usually expands the fastest. The CCR region which grew 3.2 per cent in Q4 2020, comprises popular locations among foreigners like the Central Business District, Orchard Road, Newton, Bukit Timah, HollandRoad and Sentosa. Whereas the RCR consists of housing on the peripheral of the city centre and usually preferred by locals. Overall, non-landed property prices increased by 3.0 per cent in Q4 2020, compared with a 0.1 percent increase in the previous quarter. For the whole of 2020, non-landed property prices rose by 2.5 per cent. However, prices of the landed property fell 1.6 percent in the fourth quarter of 2020 compared with an increase of 3.7 per cent in the previous quarter. Landed property prices climbed 1.2 per cent on an annual basis in 2020. Rentals increased by 0.1 percent for private residential properties in Q4 2020, compared with a 0.5 percent decrease in the previous quarter. For the whole of 2020, rentals of private residential properties fell 0.6 percent compared with the 1.4 percent increase in 2019. This is because the rental property is usually taken up by foreigners and many have returned home as a result of travel restrictions as well as dramatically reduced job opportunities for foreigners to due to the economic downturn caused by COVID-19. A majority of Singapore residents do not rent property, preferring to buy, and this is made possible by various subsidies and schemes especially for government-built housing.