More luxury properties priced above $10 million have been sold this year than in the past 11 years. Most of the buyers were investors who have long-favoured Singapore’s political and economic stability.
Singapore’s political and economic stability draw for property investors
The increase in demand for luxury properties are largely fueled by Chinese millionaires looking for safe-havens to park their assets. Sales of such properties have increased annually since 2011 and in the first 8 months of 2019, the highest number of luxury properties priced above $10 million have been sold since 2008. 68 such condominium units have been sold thus far.
The current political instability in Hong Kong and the weakening of the Chinese yuan due to the US-China Trade War may have also pushed investors to look elsewhere. Despite the increased stamp duties from 15% to 20% for foreigners purchasing homes in Singapore, the demand for expensive apartments in exclusive neighbourhoods have been on the rise.
Investors favour apartments in exclusive neighbourhoods
In the prime districts, where properties are already more highly-priced and highly-prized, Chinese citizens have picked up at least 76 apartments valued over $5 million each within the last 8 months of this year. Similar acquisitions made by Singaporeans was 75, which meant Chinese investors made up about 50% of sales in this sector alone.
While Singaporeans often prefer private landed homes with the price they have to pay for luxury apartments, foreigners are foreigners are not allowed to purchase landed homes in Singapore with the exception of those in Sentosa.