More overseas investors are heading upmarket, drawn by images of a global city, a low tax rate and other favourable conditions
Foreign investors have been racing to buy more expensive Singapore residential properties this year, but some veteran industry watchers say there may be safer bets.
The proportion of foreign buyers in Singapore hit a new high at the beginning of the year of 27 per cent. Indonesians and Malaysians are grabbing the largest slices, each taking up 5 per cent of the total, followed by Indian investors at 4 per cent. Britain (3 per cent) Australia (2 per cent), China (1 per cent) and the US (1 per cent) provide the remaining top foreign players.
Their purchases have been surging towards the high-end and luxury range. The proportion of foreign home buyers purchasing properties in the S$1.5million (HK$7.76 million) to S$5million bracket jumped from 27 per cent at the end of last year to 32 per cent in January this year.
CB Richard Ellis Research executive director Li Hiaw Ho expected this performance to continue for the foreseeable future, which would keep Singapore in the spotlight for more foreign investment.
'With the recent government estimate gross domestic product grew by 8.25 per cent in the second quarter of this year, following a 6.4 per cent increase in the first quarter, confidence in Singapore as a global city will draw foreigners and global funds to invest in the Singapore residential market,' he said.
'Home prices may see a total increase of 20 per cent to 25 per cent while new home sales are likely to achieve 16,000 to 18,000 units for the whole year.'