Investors from China topped the list for purchasing the most homes among foreigners and permanent residents in Singapore. Most of their purchases are high-end residences in non-landed properties. -AsiaOne
Sun, Aug 21, 2011
Foreigners from China have once again emerged as the top non-Singaporean buyers of private residential properties.
According to The Straits Times, they bought a record 640 homes in the three months ending June 30, compared to the 527 units they purchased in the first three months of this year.
This is the second consecutive quarter that they have emerged as the top foreign home buyers, accounting for 26 per cent of all purchases by foreigners and permanent residents.
Most of the homes bought by foreigners were high-end residences in non-landed properties, with the exception of one purchase in Sentosa Cove, said The Straits Times.
Chinese investors were attracted to Singapore because of language similarities, a researcher from DTZ Research told the English daily.
In addition, many of the Chinese buyers send their children to study in Singapore and purchase homes for their children and families to stay in. It also facilitated their business arrangements when they come here to do business, the researcher said.
Singapore's political stability and focus on long-term growth were also attractive to these Chinese investors, as well as the effective legal system and a well-planned infrastructure.
Another researcher from Savills Singapore told The Straits Times that Chinese nationals are likely to dominate the list of non-Singaporean buyers because they are always looking out for places where they can safely invest in during uncertain times.
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Mainlanders go for location, sea view
The Straits Times also reported that Chinese buyers see location as critical.
Housing agents told the English daily that Chinese buyers had showed keen interested in district 15 as the sea view gives it a different feel from other areas.
The Marina Bay area is also popular with the buyers as they like the brand-name prestige. The Keppel area is popular because of the view, according to the newspaper.
Chinese mid-end purchases typically cost more than $2 million and have at least three bedrooms, housing agents said.
Homes near the cluster of science and research facilities in Singapore's west were also popular because the Chinese nationals either worked there or had children studying there.