Mainland Chinese buyers have been buying up the largest number of Singapore’s luxury private condominiums this year compared with other foreigners. This is despite the hefty 30% Additional Buyers Stamp Duty (sort of a tax for foreigners over and above their purchase price).
This is showing the amount of wealth flowing into the city state from the world’s second largest economy.
Buyers from China purchased 932 private units in the first eight months of 2022, almost twice the number bought by Malaysians, which came in second.
Chinese buyers also took the top spot for luxury condominiums north of S$5 million (US$3.5 million), accounting for almost 20 per cent of sales, or 81 units. US citizens came in second with 34 unit (who pays zero % ABSD in Singapore).
Chinese buyers have always been Singapore’s biggest foreign buyer group since 2016, and took up 6.7 per cent of total transactions this year, almost bouncing back to pre-Covid levels.
Rich Chinese are purchasing large number of luxury condos in Singapore : Total Transactions Volume
Total foreign transactions this year are also close to pre-pandemic levels, reaching more than 14,000 by August.
While Singapore introduced property curbs in December 2021, increasing stamp duties for second-home buyers and foreigners purchasing private property, that does not seemed to have deterred buying interest.
Some foreign buyers consider luxury properties in the city state to be cheaper than in other cities. The city also offers secure and safe environment with top class medical and education. In that case, the new cooling measures introduced is “not likely to be significant” for high net worth individuals.
As one buyer famously said (and it has become a meme in Singapore), “This ABSD is just but an entry fee to Singapore”.
Singapore has removed most of its Covid-19 curbs with high-profile international conferences and events returning to the city state in recent months. Singapore just successfully hosted the 2022 Formula One event.
