More Luxury Homes Sold with Higher Number of Foreign Buyers Despite Property Curbs

Although new property cooling measures were applied to Singapore’s real estate market by the end of 2021, reports present a considerable rise in the sales of luxury homes with an increasing number of foreign investors. Buyers invested in 653 recently built new homes during the month of April; however, the count was 654 in the month of March. But if we compare the transactions with the previous year’s data, there is a huge rise of 48.7% from 1270 units sold at that time.

The developers launched 397 new launch condos in the previous month, and this count is almost 28.5% higher than the 309 units rolled out in March. However, the volume of new units launched into the market is almost 61.8% less in comparison to the 1038 units launched during the previous year.

If we talk about executive condominiums, only 48 units were sold during March, but this count increased to 186 units during the month of April. This count was increased due to the launch of North Gaia EC in Yishun, where 166 units were sold out of a total of 616.

As per URA data, luxury home sales were up with the sale of 115 units for $3 million each; however, the count was limited to 89 units in the month of March. Reports reveal that 35 units were sold in the month of April at approximately $5 million in comparison to only 24 units sold during March.

Recent updates from Les Maisons Nassim development reveal that three ultra-luxury units were sold at $35 million each. It is observed that the highest transacted price for an 8633 sq ft unit apartment at this site was $49 million. Reports state that 59 non-landed private homes were sold to foreign buyers in the previous month; it was almost double the number of units sold in March. Note that majority of units sold in the city fringe and core central region were purchased by foreign buyers.

News updates reveal that city fringe private homes accounted for 44.3% of the total sales volume during the previous month. Furthermore, homes in the core central region of Singapore accounted for 31.5%, but the suburbs area experienced only 24.2% of sales. The rise in the count of luxury home purchases, along with the active involvement of foreign buyers, indicates that Singapore’s real estate market is influenced even after cooling measures. As per new rules, the additional buyer’s stamp duty for foreigners buying properties in Singapore is 30%.

Singapore’s real estate property has achieved the upper hand over several other countries with speedy recovery after the covid-19 pandemic. It has improved the confidence of investors with hopes that they can enjoy great returns in the long run. Recent market instability conditions reveal that after great setbacks from cryptocurrency and the stock market, foreigners are now looking for some reliable choices to make profits. Furthermore, the limited stock of new homes in the market may also increase competitive forces in the market while leading to higher prices.



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