Foreigners snapped up more homes despite hefty ABSD levy

Malaysians led the charge in the first three quarters.

Foreign property purchases registered a surprising uptick in the first nine months of the year, in spite of the hefty Additional Buyer’s Stamp Duty levied on foreign property buyers.

According to Nomura, purchases by Singaporeans accounted for 73% of the sales in the first three quarters, lower compared to the 76% in 2013 and the 80% in 2012.

“On the other hand, purchases by foreigners, in particular the Malaysians (9.5% in 9M14, vs. 7.6% in 2013) and Mainland Chinese (8.5% in 9M14, vs. 6.8% in 2013), appear to have held up better, notwithstanding the ABSD levied on foreign purchases. That being said, we note that purchases by Indonesians remain slow (4.3% in 9M14, vs. 4.6% in 2013) and this has contributed to the continued weakness in the prime luxury segment,” noted Nomura.