Foreigners are buying fewer homes.
Because of strict purchase restrictions, foreigners make up only a tiny percentage of local private real estate buyers.
Foreigners accounted for about 3% of all private housing transactions in the past two years, down from about 5% between 2017 and 2019, before the outbreak.
While the percentage of foreigners remains low, the government will continue to closely monitor the inflow of foreign capital into the local real estate market and adjust policies as necessary to ensure the stability and sustainability of the real estate market.
In addition, it is not common for the same buyer to purchase multiple units in the same project, accounting for only about 1% and only about 0.2%.
Therefore, bulk purchases of real estate are unlikely to have a significant impact on the local market.
Higher real estate tax rates
Property taxes on private homes have increased and mortgage rates have been rising, affecting the sentiment of local investors.
It is expected that investor demand for other asset types will increase in the coming months.
The introduction of cooling measures in Singapore in 2021, including tighter loan ceilings and higher property taxes, as well as new measures announced in this year's budget, have had a significant impact on the real estate sector.
Higher mortgage rates have further exacerbated the pressure on the rental market.
Of course, investor sentiment has also shifted.
Some have begun to consider other asset types, such as strata offices, that could avoid paying additional buyer's stamp duty.
According to the data, local real estate investment reached $9.4 billion in the first quarter of this year.
It expects to invest up to RMB 30 billion in the coming months as the economy recovers.
Private apartments are becoming favorites.
Resale prices for local private condominiums rose for the 25th consecutive month last month, according to forecasts, while transaction volumes continued to fall.
Overall private home resale prices rose 1.2% in August from a year ago and 10.5% year-over-year.
Private home resale prices rose in all regions, with resale prices rising the most outside of central areas, up 1.5% month-over-month, while core central areas and other central areas rose 1% and 0.8%, respectively.
In terms of volume, an estimated 1,135 private residential units changed hands last month, a 14.5% decrease from July and a 38.6% year-over-year decline.
Resales of private residential units have been declining since April, probably due to the rise in interest rates on time deposits and savings deposits at banks, prompting potential buyers or investors to adopt a wait-and-see attitude.
In addition, the HDB' s loan interest rates have remained stable and the shorter waiting time for pre-purchased HOS projects has prompted some potential buyers to reconsider purchasing pre-purchased or resale HDB flats.
Real Estate Blueprint 2025
The epidemic has changed the industry's mode of operation and the government has launched the Real Estate Industry Transformation Blueprint 2025 to help companies meet future challenges.
The Estate Agents Council will work with key partners to make real estate transactions more digital, efficient and secure.
The new blueprint for transforming the real estate industry will facilitate the digitization of real estate transactions and encourage clients to use relevant government platforms to conduct transactions.
According to a survey conducted by the Estate Agents Council last year, 77% of clients are satisfied with the services provided by estate agents.
The blueprint will also encourage real estate agents to use technology to improve the professionalism of real estate agents and the efficiency of their services.
The Council is also working with industry stakeholders on a study to develop the skills and knowledge real estate agents should have in the future economy, which is expected to be completed by 2023.
