Chinese and Malaysians dominate Singapore’s foreign property buyers list in 2014

Any spillovers in their economies could affect us drastically.

Foreign interest was particularly high prior to GFC, before plunging when the global turmoil unfolded. It rebounded strongly when global economic green shoots emerged.

According to a report by Maybank Kim Eng, since 2004, the identity of the foreign buyers has changed quite a fair bit: PRC Chinese are now the largest group of purchasers in Singapore, especially after the GFC. They accounted for 28.2% of all foreign buying in 9M14. 

Maybank adds that Malaysians have increased their exposure to Singapore’s property market after their election year in 2008. Malaysian purchasers took pole position in 2009-10, before their dethronement by the Chinese.

Indonesian purchasers have also largely held their ground, despite a blip in 9M14. They formed 17-19% of the foreign buyers in the last eight years. The blip in 9M14 could be due to presidential elections.

Foreigners now form a bigger chunk of the home owners in Singapore. Given their profile, one can conclude that any economic crisis in countries such as China, Malaysia, Indonesia and India may have spillover effects on Singapore’s market.