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Foreign buyers accounted for 16 per cent of private home purchases in Singapore in the first quarter of this year, setting a new record high, according to real estate consultant DTZ Research.

The previous high of 15 per cent was recorded in the fourth quarter of 2007.

DTZ defines foreign buyers as non-Singaporeans and non-permanent residents.

Singaporeans’ share of private property purchases fell to 67 per cent in the first quarter, from 70 per cent in the previous three months.

The proportion of mainland Chinese among non-Singaporean buyers – comprising foreigners and PRs – hit a new record high of 24 per cent in the first quarter of 2011.

It is the first quarter that Chinese nationals are the top foreign purchasers of residential properties in Singapore.

“The residential market appears to have taken the January 2011 cooling measures in its stride,” said Ms Chua Chor Hoon, head of DTZ South East Asia Research.

“However, local concerns about high housing prices and the influx of foreigners that were magnified during the recent General Election will be a catalyst for the review of immigration and housing policies, which could dampen demand in the residential market in the coming months,” she added.

According to DTZ, small units continue to be popular among home buyers, especially the HDB upgraders.

The proportion of buyers with HDB addresses who bought units below 1,000 square feet increased 5 per cent in Q1 2011, compared with a 2 per cent increase among buyers with private addresses.

DTZ’s analysis also revealed that a higher proportion of foreigners bought into the high-end market during the quarter.

For transactions costing S$1.5 million and above, the proportion of purchases made by foreigners increased the most – from 17 per cent to 21 per cent.

For purchases below S$500,000, the proportion of transactions made by Singaporeans was 80 per cent, up from 72 per cent a quarter earlier.

This reflected the smaller budget among Singaporean buyers. “At the lower end of the price scale, locals are the main drivers of demand,” said DTZ.

Source : Channel NewsAsia – 25 May 2011

The proportion of foreign home buyers in Singapore shot to its highest level ever in Q1 2011, according to research by DTZ.

Foreigners bought 16 per cent of all homes sold in the quarter, the highest quarterly percentage since data was made available for analysis in 1995. The previous high was 15 per cent in Q4 2007.

The  research  report is based on caveats lodged for both new and secondary sales.  Caveats lodged are used as a proxy for sales transactions, thus the terms ‘transactions’ and ‘caveats’ are used interchangeably in this report.

Among  non-Singaporean  buyers  which  comprise  foreigners  and  Permanent Residents  (PRs),  a  new  record  high  was also reached in Q1 2011 by the mainland  Chinese.  They made up 24 per cent of purchases among non-Singaporeans in the quarter, overtaking the Malaysians who have held the top position since Q2  2008. The Malaysians’ share amongst non-Singaporeans dipped from 24 per cent in Q4 2010 to 21 per cent in Q1 2011.

The  government  measures  implemented on 14 January to ensure a stable and sustainable  residential  market  affected  mostly  demand in the secondary sales  market  and  particularly in the month of February. 745 caveats were recorded  in  the secondary market in February compared to 1,664 in January 2011  and  1,890  in  December 2010.  Besides the cooling measures, another factor  could  be  due to February being a shorter month with the Lunar New Year  public holiday. Nevertheless, the secondary sales volume rebounded to 1,592  caveats  in  March,  close  to  the  January level, as the knee-jerk reaction to the cooling measures appeared to wear off.

Small  units  below  1,000  sq  ft continue to be popular, especially among purchasers  with HDB addresses. The proportion of buyers with HDB addresses who  bought units below 1,000 sq ft increased from 41 per cent in 2010 to 46 per cent in Q1 2011.  Among buyers with private addresses, the proportion who bought small units increased from 27 per cent in 2010 to 29 per cent in Q1 2011.

DTZ’s  analysis  also  shows  that a higher proportion of foreigners bought nto  the high-end market in 1Q 2011. For transactions costing $1.5 million and  above,  the  proportion of purchases made by foreigners increased from 17 per cent  in Q4 2010 to 21 per cent in the quarter. On the other hand, the proportion of transactions  made  by Singaporeans for purchases below $500,000 was higher at  80 per cent  in  1Q  2011,  compared  to  72 per cent a quarter earlier, reflecting th smaller budget amongst Singaporean buyers.

Ms  Chua  Chor  Hoon,  Head of DTZ South East Asia Research commented: “The residential  market appears to have taken the January 2011 cooling measures in  its  stride.  However, local concerns about high housing prices and the influx of foreigners that were magnified during the recent General Election will  be  a  catalyst  for  the review of immigration and housing policies, which could dampen demand in the residential market in the coming months.”

Source : PropertyReport – 24 May 2011