50% fewer Singapore properties being sold to foreigners

International investors are shunning Asia’s second most expensive property market – so where are they heading instead?

Once the go-to market for many in the Far East, why are international investors now turning their backs on Singapore real estate?

137 non-landed private homes were sold to foreign purchasers in the third quarter of 2015, equating to 4% of all non-landed sales, figures from Cushman & Wakefield show. This marks a drop of just under 50% over the same period in 2014, where 261 sales were made by foreign nationals, accounting for 10% of overall volumes. 

“If their share continues to decline, the support for central region and some city fringe homes could weaken,” said Christine Li, Cushman & Wakefield Director of Research.

It would seem that after eight consecutive quarters of price drops, overseas investors have finally lost patience with the Singapore market. Government cooling measures in recent years have been implemented to ensure the market doesn’t reach a property bubble.

For international investors, this has meant increased rates of stamp duty. The Additional Buyers’ Stamp Duty (ABSD) rate that was introduced now means that an overseas investor would need to rent out an apartment for five years just to pay the 15% ABSD.

The result is declining interest from many of Singapore’s core investor locations. Buyers from China bought 222 private homes in quarter three 2014; that number was down to 163 this year. Indians acquired almost 50% less properties, while Indonesian investors bought just 39 in 2015 compared to 112 last year. 

Real estate has become the preferred asset for these investors, assured by its track record for growth and its relative stability when compared with the wild fluctuations of equities markets in the region. So if they’re no longer buying real estate in Singapore, where are they investing instead?

This year Select Property Group has noticed a significant uplift in interest in UK property from investors in Singapore and the wider Asia region. Attracted by its performance, diversity and returns in a strong currency, it’s prompted the Group to open an office in downtown Singapore, where investors can discover UK real estate opportunities.

Select Property Group will hold the exclusive grand opening of its new Singapore office on Thursday November 25th – and it wants you to be part of it. Hear about the latest UK investment opportunities and find out why Select Property Group are the trusted UK property investment experts of investors in over 117 countries. To register and secure your place, follow this link.