GMT : Tue, 06 Dec 2016, 02:53

Property: Foreign buyers up, S’poreans down?

More foreign demand for S’pore homesI refer to the article “More foreign demand for S’pore homes” (Straits Times, Nov 30).China is the largest group of foreign buyers

It states that “Foreigners are jumping back into the private residential property market here in greater numbers, with buyers from China consolidating their position as the top buying group.

In a new report, property consultancy JLL said there were 782 transactions by foreigners in the first nine months of this year, an 11.7 per cent surge year on year. The figure excludes permanent residents.”

Cooling measures to help S’poreans?

The primary reason for the property cooling measures may be to make homes more affordable for Singaporeans. However, the data now seems to indicate increasingly the opposite effect – more foreign buyers and relatively less local buyers.

What is the breakdown of the local buyers into Singaporeans and permanent residents (PRs)?

Perhaps we may need to review the cooling measures to discourage even more purchases by foreigners and PRs, relative to Singaporeans.

Chinese preferred “affordable” homes?

As to “JLL found that Chinese buyers preferred homes in the suburban areas, owing to the more affordable price tag, with such apartments making up 58 per cent of their transactions” and “purchases by the Chinese and Malaysians ranged from $750 to $1,700 per sq ft (psf)” – it would appear that the largest proportion of foreign buyers may be competing with Singaporeans in the supposedly more affordable suburban areas.

Americans better off than S’poreans?

With regard to “JLL noted that the significant increase in the proportion of US buyers – up sharply from 1.1 per cent in 2011 – was attributed partly to their being exempted from the additional buyer’s stamp duty (ABSD) under a free trade agreement” – why did we sign an agreement  that makes Americans equal to Singaporeans in our own backyard?

Leong Sze Hian

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21 Responses to “Property: Foreign buyers up, S’poreans down?”

  • oxygen:

    FOREIGN BUYERS ARE USUALLY THOSE WITH DEEP POCKET – they can afford to dip deeper into risks undertaking than locals.

    Tinkling around with property cooling measures is NOT the solution for locals – their risks factors are EXCESSIVE DEBT AND POSSIBLE INSOLVENCIES when the economy sours inducing unemployment.

    Chinese buyers are all speculative currency hedging – fleeing the falling Yuan by buying foreign assets. You see that in commodities market too. That can reverse suddenly if they borrowed in RISING US DOLLAR when repayment comes due – forcing deep liquidations of their foreign property purchase in financial distress.

    All that means is our property market is more volatile ahead.

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  • William C:

    China is a big country. They curb speculations by imposing 40% for a 2nd home.

    They even restricted foreigners buying China properties unless you have worked in China for at least a year.

    Singapore government on 1 hand said land scare, and on 1 hand is allowing foreigners (non SPR) to buy our properties just for investment alone. If this is not a hypocrisy, then what it is?

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  • hhh:

    China is digging up all the rich that acquires illicit wealth, rich is shipping out their cash.

    US, Europe and Canada are tightening checks on immigration and illicit funds.

    SG is one country that does not check where your source of money is coming from, you can change your Laundry into assets very easily.

    So where will these people go?

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  • Never a PAP voter:

    China big investment in Malaysia. Must have given great confidence to the Malaysians and PRC to invest more in local properties. Malaysian politicians don’t know how to build up Malaysia, probably with China money, they can build a better Johore and Malacca business environment. Further boosting confidence in property buying here.

    PAP don’t really care about sovereignty. Yes in front of Hague court, International Court of Justice and Malaysia meddling of race issues here. They will make all sort of noise and beat their chest with earnest, if Malaysian politicians should start to busy body and interfere with other country problems or encroach on other people land. But as long as you give them a good price, sovereignty and all that national pride, they will sell to the biggest bidder.

    All the talk about having US military to remain a strong presence here, and building stronger ties with Israel so as to keep Singapore under regular radar view of both US/Israel interests, so that China won’t have her fingers groping around here where it should not be. Means nothing, as long as, if China can give them a good price, and still keep PAP in power. But China is for China interest, why should they bow down to PAP.

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  • Cannot trust PAP:

    Many of the Singaporeans who buy are newly minted ones. They would buy instead of renting at 5% yield or more. About 20,000 are minted every year!
    The cooling measures are a farce. Property developers can sell to their Singaporean bosses and managers or set up company to buy over unsold units to avoid paying penalty for hoarding and not selling within 5-7 years. Many cooling measures may not be applicable to foreigners because of treaty or laws and developers and the rich investors can always find ways to avoid the cooling measures, taxes and penalties.
    Many more FTs are continuing to come here to displace Singaporeans and buy property instead of renting. In fact, many even buy resale HDB flat and rent it out. Singaporeans have to rent heartland condo and even “subsided” government flat from foreigners! In the past, the rich Indonesians would buy condo in the prime districts 11-13 and rent out to foreigners. Now, the Chinese, the Indians and you name it are doing so all over Singapore.
    Lawrence Wong continues with Khaw’s latest policy to reduce land sale and HDB flats. Khaw introduced the cooling measures to “appease” the people to win votes but the end result is prices remain expensive and become more unaffordable to Singaporeans.
    Lawrence Wong as a young ambitious PAP clone would do what PAP leadership has been doing. Let’s follow the flow, there is no need to hope for affordable housing for you and your children, unless you have rich parentage or a change of government.

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  • Young Sporeans Can Afford too:

    Many senior citizens in Sg are asset rich but cash poor. Many young ones are hoping that their parents quickly “up the lorry” early so that they will be rich. Can upgrade their old hdb to condo, can use their parent’s remaining Cpf to buy car, and go on holiday. Just look at the confidence of many young Sporeans, they aren’t that worried about their future nor competition from foreigners, because they know they have a “gold mountain” behind them. They will be buying pte properties!

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  • oxygen:

    @ Young Sporeans Can Afford too:

    YES, SOME OF THE INCORRIGIBLE MILLENNIALS might be exactly what you said but they are a token handful few waiting for pioneer generation to “up the lorry” (to borrow your lingo). It only apply for those with these confluences of circumstances

    - sole descendant and their parents are really going to go off to Tern Sua soon.

    - parents are rich with significant housing/cpf assets

    - parents have no outside sibling burdens of helping their brothers/sisters when the reality is that the baby boomers are mostly spent generation supporting the millennials below them and their own aged parents above them with severe pressure of medical bills.

    THE CONFLUENCE OF SO MANY STRANGE CIRCUMSTANCES IS SLIMMER THAN STRIKING A SMALL CONSOLATION 4-D betting next week. The reasons are explained below.

    Young Sporeans Can Afford too: Many senior citizens in Sg are asset rich but cash poor. Many young ones are hoping that their parents quickly “up the lorry” early so that they will be rich. Can upgrade their old hdb to condo, can use their parent’s remaining Cpf to buy car, and go on holiday. Just look at the confidence of many young Sporeans, they aren’t that worried about their future nor competition from foreigners, because they know they have a “gold mountain” behind them. They will be buying pte properties!

    In any case, the baby boomers have INADEQUATE SAVINGS of minimum sums for their own survival and their HDB have no residual inheritance value with less than 30 lease left in them when they leave for the eternity world.

    And most of them had huge medical bill to pay made worst by longer longevity.

    And the millennials CAN’T simply commit to property bet waiting for these events to come together to work magic to rescue their financial burden of carrying on an unsustainable mortgage.

    I THINK THE REAL REASON WHY MILLENNIALS ARE SO BROKE OF LIVING ON CREDIT is because of their income/expenses of high life living up with the Jones are OUT OF BALANCE. I have heard of some irresponsible millennials leaving their credit card bills of nightclubbing to their old dear and old dad to pay.

    NO RESPONSIBLE PARENTS SHOULD ACCOMMODATE THIS EMOTIONAL BLACKMAIL – if they can’t pay, they either borrow from another bank or friend or sell their orifices in Geylang for a quick turnaround.

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  • cloudy day:

    This is just shit. I am so pissed off we are selling this country to so many PRC, Indo, Malaysians…

    Why do the authority keep this up? It’s already so difficult to own something here for us locals. They continue to sell out and prevent the citizens from having a decent place to live.

    Criticize all you like about Donald Trump. This man fights for his people, he wants to halt immigration, wants to create jobs, in fact, he doesn’t want to waste any USA money to protect other nations. Let other countries defend themselves or else pay USA to do so.

    Does our leaders and politicians do anything for their citizens? Fuck, no.

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  • PAP legacy:

    Srs helped Japs to killed off Singaporeans unground anti Jap movement and British Colonial activities which both suffered bably. Brits surrendered. Singaporeans anti Jap movement quashed. Both reached pinnacles. In the same tone but oppositely is morality. Sr morality defined party taboo including divorce and adultery. It seems that karma has this overturned. Sr taboo becomes Jr Honour understandly affirmed by bureaucrats movement and changes. Tough luck for Punggol East disgraced PAPMP fast closing in WP similarly disgraced mP in Hougang. If their unfortunate leaks were delayed. They may be voted as reole model politicians within the bureaucracy.
    Some K-Pei Soh predict many are on the pipeline of leaks to be advantaged for carnal satisfaction with honour.

    Singapore is really turning into a haven for the numerous FTs with bars popping all over the island, opportunity to bashing up taxi drivers in their stupor and high class all Gs!

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  • PAP legacy 2:

    Now having acieved that, it is time to make a heap on investment. Did anyone said Ma has been grinning away and with an angmo missus, what wrong with selling Singapore off. Not only PAP is getting Foreigners and crowding Singapore having fun and flexing their barbaric heritage authority affirmed and honoured immorality, taking jobs created and now occupying their homeland. PAP is indeed working for Singaporeans but sorry nott any Singaporeans but nepotics and ball suckers. The minority MP didn’t quite rationalize why policians esp ministers should be multimillionaires. Not that they have the guts to face MMaires MNCCEOs but to have the fluidity to move when they have made a pile selling their estate investmen.

    Daft Singaporeans still dreaming of Swiss standards. Soon they will be homeless and degenerates in SINisland! regardless of PAP majority or minorities gups!

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  • PAP has the mandate:

    To PAP, dirty money or clean money, they are all money.The more the merrier…..as long as no one whistle blow on dirty money, you can keep your dirty money…hahahahhaahahahah..Stinkapore pretending to be honest but in fact, the place is awashed with dirty money….hahahahah

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  • SG badly needs a reboot:

    Poor economy but building of condos and HDBs never really decline, you wonder why?

    I know a number of PRC new citizens driving luxury cars living in condos or ECs. They dont have any job, they bought shop houses in Geylang. Their fathers parked them here and opened bank accounts, once a while their parents will come visit them. They told me, the parents are making money in China but shipping their money to SG bank accounts. They said if China anything goes wrong, their money and their sons are in SG. So a lot of 富二代are living high life in SG, sponsored by their parents. Buying properties also the fastest way to convert laundry into asset.

    They are also a lot of new citizens, given priorities for BTOs, the building of so many new BTOs are for new citizens. Since we are still aggressively importing despite poor economy, it explains why Tengah is being planned to house up to 10M on this island.

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  • Same same:

    It’s the same in Australia, particularly Sydney is not spared, they are almost everywhere…

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  • opposition dude:

    Careful, careful, you don’t know where these supposedly rich PRCs got their money from.

    But hey, why would PAP give an F about it in the first place. Birds of a feather flock together after all.

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  • Rich Get Richer:

    We pay Ministers millions so that they can invested in homes and properties and get rich. Ministers are now the upper class instead of the working classes, why shouldn’t they enrich themselves? Money is never enough.

    PLP Ass Licker, Yes Woman
    you don’t need much space to have sex
    NSmen service for the country cannot be measured in dollars and cents.

    Josephine Teo Ownself Praise Ownself to be top 1000 in Singapore despite epic SMRT failure which she was Minister of State since 2011
    On the pegging of ministerial salaries to the income of the top 1,000th citizen taxpayer, it is incorrect to label it as “elitist”. By itself, the peg says nothing about the value and importance of people at whatever level of income. It makes no value judgement at all.

    The correct way to think about the peg is “would we like to draw our top political leadership from that level in our population?” This is how sound HR practitioners think about salaries too, to peg them at the level which you want to draw people from.

    William C:
    China is a big country. They curb speculations by imposing 40% for a 2nd home.

    They even restricted foreigners buying China properties unless you have worked in China for at least a year.

    Singapore government on 1 hand said land scare, and on 1 hand is allowing foreigners (non SPR) to buy our properties just for investment alone. If this is not a hypocrisy, then what it is?

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  • Check your crystal ball looney:

    hhh:
    China is digging up all the rich that acquires illicit wealth, rich is shipping out their cash.

    US, Europe and Canada are tightening checks on immigration and illicit funds.

    SG is one country that does not check where your source of money is coming from, you can change your Laundry into assets very easily.

    So where will these people go?

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  • Brutal-truths:

    ST Property Desk is well behind the news curve in it’s property reporting. Since DT ascension to PEOTUS; the global markets have shifted rapidly & China, Japan FX had reacted badly to USD rise post-DT.
    2017 will be very bad for S’pore property investment simply:
    1. FEDs will be raising US interest rates; how soon & how rapid will rate rise is the question? INCREASING INTEREST RATES WILL BE FATAL TO INDEBTED BORROWERS & THOSE LIVING THE HIGH LIFE ON CREDIT.
    2. Trumponomics will create a global capital reverse flow ie. capital flowing back into US; emerging markets starve of capital; shades of 1997/98 ACC; M’SIA RM HITTING NEW FX LOWS SINCE DT VICTORY. WHY?
    3. China enacted strict capital controls to stem outflow. China’s foreign reserves already dangerously low & USD/RMB FX @ rock bottom. PROBABLY IT’S A LAST ‘BURST OF FIRE’ FROM AH-TIONG INVESTORS!
    4. Looming US industry re-shoring & emergence of trade war is ANTI-GLOBALIZATION & ANTI-FREE-TRADE. S’PORE OPEN ECONOMY IS VERY VULNERABLE!
    5. Reduced (capital) investments & global trade are terrible for S’pore job creation; remember that 60%-70% (3 out of 4 jobs) of newly created jobs goes to foreigners. Decline means less housing demand from incoming foreigners. That means rental market takes a STEEP DIVE.
    6. From 2017 on; many property launches will achieve TOP. Rich supply vein of new properties hitting a terribly lousy rental market is a recipe for total disaster!
    HIGH HOUSEHOLD DEBTS-NO JOB SECURITY/NO SAFETY NET; HIGH COL BRICK-N-MORTAR ECONOMY-VERY POOR ECONOMIC OUTLOOK; EXCESSIVE PROPERTY HOLDINGS-POOR RENTAL MARKET; UNSUSTAINABLE HIGH PROPERTY PRICES-VERY HIGH DEBT LEVERAGE – what does all this tell you? *AC/DC PLAYS “HIGHWAY TO HELL”

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  • Copy & paste expert:

    Brutal-truths:
    ST Property Desk is well behind the news curve in it’s property reporting. Since DT ascension to PEOTUS; the global markets have shifted rapidly & China, Japan FX had reacted badly to USD rise post-DT.
    2017 will be very bad for S’pore property investment simply:
    1. FEDs will be raising US interest rates; how soon & how rapid will rate rise is the question? INCREASING INTEREST RATES WILL BE FATAL TO INDEBTED BORROWERS & THOSE LIVING THE HIGH LIFE ON CREDIT.
    2. Trumponomics will create a global capital reverse flow ie. capital flowing back into US; emerging markets starve of capital; shades of 1997/98 ACC; M’SIA RM HITTING NEW FX LOWS SINCE DT VICTORY. WHY?
    3. China enacted strict capital controls to stem outflow. China’s foreign reserves already dangerously low & USD/RMB FX @ rock bottom. PROBABLY IT’S A LAST ‘BURST OF FIRE’ FROM AH-TIONG INVESTORS!
    4. Looming US industry re-shoring & emergence of trade war is ANTI-GLOBALIZATION & ANTI-FREE-TRADE. S’PORE OPEN ECONOMY IS VERY VULNERABLE!
    5. Reduced (capital) investments & global trade are terrible for S’pore job creation; remember that 60%-70% (3 out of 4 jobs) of newly created jobs goes to foreigners. Decline means less housing demand from incoming foreigners. That means rental market takes a STEEP DIVE.
    6. From 2017 on; many property launches will achieve TOP. Rich supply vein of new properties hitting a terribly lousy rental market is a recipe for total disaster!
    HIGH HOUSEHOLD DEBTS-NO JOB SECURITY/NO SAFETY NET; HIGH COL BRICK-N-MORTAR ECONOMY-VERY POOR ECONOMIC OUTLOOK; EXCESSIVE PROPERTY HOLDINGS-POOR RENTAL MARKET; UNSUSTAINABLE HIGH PROPERTY PRICES-VERY HIGH DEBT LEVERAGE – what does all this tell you? *AC/DC PLAYS “HIGHWAY TO HELL”

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  • Elkay Whye:

    If many china sg property owners sell their flats or condos or bungalows together will sg property market CRASH ?!!

    We must kowtow to China !!

    We so scared.

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  • Boh Bian Solves all:

    Just say Boh Bian lor !

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  • oxygen:

    ONE INDONESIAN INVESTOR AT ORCHARD SCOTTS LOST BIG TIME – an awesome 44% loss in nominal terms of $1.8 million in just under 5 years.

    AND IT IS PRIME ORCHARD ROAD LOCATION AS WELL

    Edge Property:On Nov 15, $1.8 million went down the drain for the Indonesian seller of a 1,647 sq ft condominium at Orchard Scotts. He sold the unit at $1,427 psf to a Singaporean buyer after purchasing it at $2,540 psf in January 2012. This translates into a 44% loss for the seller, or 9% annualised loss over a holding period just shy of five years.

    Prices at Orchard Scotts, a 99-year leasehold development completed in 2008, have trended down since 2013, when a 2,336 sq ft unit was sold at $8.5 million, or $3,620 psf.

    https://sg.finance.yahoo.com/news/1-8-mil-loss-orchard-020000244.html

    Property investment can be a BIG KILLER even for newer recently completed development in prime Orchard Road locations. Hard earned money from other businesses simply vaporize in a crazy dream of castle in the air fantasy illusion.

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