The proportion of non-permanent residents in the US buying non-landed homes rose from 23.8 per cent in the first quarter of 2023 to 27.3 per cent in the second quarter of 2023, according to a new study released by Orange Ease Industries on 20 July.

In comparison, the percentage of non-permanent residents of mainland China purchasing non-landed homes declined from 41.1 per cent to 24.9 per cent over the same period.

In the second quarter of 2023, Chinese buyers purchased only 51 private residential units, lower than the 56 private residential units purchased by US buyers. Lagging behind were Indonesian buyers who purchased 7 units and Indian buyers who purchased 4 units. ‍‍‍‍‍‍‍‍‍‍‍‍‍‍ ‍‍‍‍‍‍‍‍‍

Due to the Free Trade Agreement signed between Singapore and the United States, American buyers enjoy the same stamp duty treatment as citizens in Singapore, and buyers of other nationalities, in order to pay the lower stamp duty, may consider buying a property only after they have become Singapore citizens or permanent residents.

After all, if you add in the number of people who bought homes as Singapore permanent residents, Chinese buyers transacted a total of 271 units in the second quarter, followed by Malaysian buyers with 164 units, Indian buyers with 101 units and American buyers with 64 units.

Chinese buyers lose top spot to foreign buyers as private home transactions plummet 73 per cent in June from a year earlier

Photo credit: OrangeEasy Industries

Orange Ease Industry speculates that US buyers may continue to be the main foreign buyers of private homes as they are not affected by the stamp duty policy.

It should be noted that Chinese buyers often topped the list of private home purchases in Singapore before the 60 per cent stamp duty policy came into play. ‍‍‍‍‍‍‍‍‍‍

Between January-August 2022, the list of luxury flats above S$5 million was topped by Chinese buyers.

Distribution of luxury condo rankings within $5-10 million:

1. China: 55 per cent

2. USA: 20 per cent

3. Indonesia: 16 per cent

4. Malaysia: 7 per cent

Since the Singapore government raised the stamp duty for foreign buyers to 60 per cent in April this year, private property sales have gradually declined, with June seeing a 73 per cent plunge from May.

The Singaporean government even pushed another new policy on 20 July to further restrict foreigners from buying homes, and expatriates must get approval from the authorities to buy commercial and residential private developments. ‍‍‍‍‍‍‍

With heavy cooling measures and lower sales, developers in Singapore may bring forward more projects to boost sales, and Singaporeans may abandon their current properties and switch between HDB flats and condominiums. According to Orange Ease Industry's speculation, property prices in Singapore will stabilise and slow down to 4% to 6% from the high growth rates of 10.6% as well as 8.6% in 2021 and 2022 as the supply of housing increases.

In this way, Singapore citizens and permanent residents will not find it increasingly difficult to buy a home as property prices soar.