Non-PR foreigners are purchasing more private apartments and
condominiums than those who are permanent residents.
Chinese and Indian nationals went on a huge property-buying
spree last year, quickly snapping up condos and
apartments in Singapore.
Statistics from the
Urban Redevelopment Authority
(URA) and analysed by Knight Frank showed that the
number of non-landed private homes bought by foreigners who were
not who were non-permanent residents (PRs) jumped by 37.1 per
cent last year, reported The Business Times on Friday.
This far outstripped the 12.1 per cent increase of such
homes being bought by PRs.
Market watchers say the numbers reflect Singapore’s ongoing
transformation into a more globalised city and investment
market.
The study shows a 90.4 per cent jump in the number of
apartments/ condominiums bought by Chinese nationals who were not
PRs against the 31.5 per cent increase in the number of such homes
bought by those who were permanent residents.
It was a similar trend among Indian citizens who acquired
non-landed homes in Singapore last year.
Those who were foreigners posted an almost 50 per cent surge in
the number of units bought to 238. In comparison, the number of
such units bought by Indian PRs increase by only 16 per cent from
679 to 788 units between 2009 and 2010.
“China and India are clearly the economic powerhouses of the
world and Singapore has always been seen as an attractive country
to invest in.
“This is due to transparency of law, absence of capital gains
taxes and no entry barrier for apartment/ condo purchases,” said
Knight Frank chairman, Tan Tiong Cheng.
The trend of bigger increases in non-PR foreign buying of
non-landed private homes is expected to continue, predicts Ong
Choon Fah, head of consulting & research (SE Asia) at
DTZ.
“As Singapore becomes a more international, vibrant place with
more entertainment and other attractions, it is being seen as a
more desirable place to live in, and for a second home,” she
adds.
Knight Frank’s analysis also showed substantial percentage
increases in the number of condos/ apartments here bought last year
by UK citizens – both PRs and non-PRs.
The number of units picked up by non-PR UK citizens increased
around 58 per cent in contrast with the 48.5 per cent rise in the
number of units bought by those who have permanent residence.
Mr Tan suggests that some British expats may be moving to
Singapore from Hong Kong, which is becoming too expensive and
suffers from air pollution.
“Some Brits may also have decided to move out of the UK to
Singapore, where the weather is warmer, the cost of living and
taxes lower, and more opportunities abound.”
Combining PR and non-PR foreigners, Chinese citizens overtook
Indonesians to emerge as the second biggest group of foreign buyers
of apartments and condos in Singapore last year. They bought a
total of 1,611 units, ahead of the 1,555 units bought by Indonesian
buyers.
However, Malaysians held on to their pole position, with 1,858
units with Indian and UK citizens in fourth and fifth position
respectively.
The statistics also revealed a divergence in buying preferences
for non-landed homes between PRs and non-PRs within some
nationalities. For instance, Malaysians who are PRs preferred
suburban locations like Districts 14, 18, 19 and 23. These include
areas such as Eunos and Geyland.
In contrast, their non-PR compatriots tend to zoom in on
“investment-grade” locations such as District, 4, 9, 10, 11 and 15
which include areas such as Sentosa Cove, traditional prime
districts and Katong.
“Perhaps Malaysian buyers who are PRs and working here have
smaller budgets or may want to settle down.
“So they’re looking for a home in the suburbs, while Malaysians
who don’t live here are more likely to buy a Singapore residential
property for investment,” Mr Tan suggests.
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No point reign in on singaporeans if we do not impose strong
regulations to deter long term speculators from oversea who has no
interest in the development of singapore. morever, we could open
the door for money laundering from china, indonesia, india ,
vietnam and myannmar.