Sales of Singapore apartments worth at least S$10 million have hit an 11-year high, fuelled by increased demand from Chinese millionaires seeking safe-haven assets.
In the first eight months of 2019, 68 condo units in Singapore were sold for S$10 million and more, touching a record high since the corresponding period of 2008, according to property consultants OrangeTee & Tie. Sales of such apartments also exceeded the numbers racked up for each full year from 2011 to 2018, the consultants' analysis of transaction data showed.
Some buyers may have sought an alternative to financial hub Hong Kong due to ongoing protests, while others may have shifted funds from China after its yuan currency was devalued, an OrangeTee expert said.
Especially Mainland Chinese
«This may explain why we have observed more foreign buyers, especially mainland Chinese, coming into Singapore lately,» said Christine Sun, the head of research and consultancy at Orange Tee, who was quoted in «Reuters».
In Singapore's prime districts, Chinese citizens bought 76 apartments worth more than S$5 million in the period from January to August, versus 75 purchases by Singaporeans, data until Sept 19 showed. Expensive apartments in premium neighborhoods are mainly bought by foreigners because at such high prices Singaporeans have the option to buy landed property.
Big Money
«Even though the stamp duties have increased... we are still seeing people putting big money on these apartments, predominantly it is more for stability than anything else,» said Boon Hoe Leong, chief operating officer of high-end realtor List Sotheby's International Realty in the Reuters article.
Last year, Singapore adopted further measures to cool its real estate market such as hiking additional stamp duties for foreign buyers to 20 percent from 15 percent.
