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.