Private home sales have been ringing off the charts and the majority of the buyers are Singaporeans. Sales of new and resale private homes have risen by 56%. 10,565 private homes exchanged hands from January to July. In 2016, developers and private home owners sold 6,785 units.
More locals buying private homes
Sales volume is at its highest since 2013, the year from which a series of cooling measures were implemented. Previously foreigners have been the private residential property market’s focus. But the latest statistics from the Urban Redevelopment Authority (URA) showed more local buyers this year. 77.6% of private home buyers were Singaporeans. The percentage was 74.4% in 2016. In comparison, the proportion of foreigners buying private homes fell from 26% last year to 22.4% this year. Buyers from China and the United States formed the bulk of the foreign-buying pool. Those from Malaysia and Indonesia have taken a slight back seat with the strengthening Singapore Dollar.
Private property market picking up
Many of the local buyers were HDB upgraders. With the current private home prices lower than 3 years ago, some buyers are taking the opportunity to move into the private property market. Others, to move nearer to their children’s schools. New launches have fared particularly well this year though property analysts are cautious about declaring this a sharp rebound. Developers have sold many leftover units from previous launches at discounted prices. The percentage of private non-landed home resold at a loss came up to 21%.