Five Reasons Why Foreigners Are Still Buying Properties In Singapore

The stock market is falling faster and more often than they are going up. There is economic uncertainty yet foreigners are still buying properties in Singapore.

Approximately 100,000 public and private homes are expected to be completed in 2014 and 2015. Prices are not expected to fall with this new flood of flats onto the market. Past trends have shown that prices are driven more by sentiment than by stock levels. With the new immigrants coming into Singapore, demand by the immigrants will prevent prices from falling

Foreigners make up 60% of the buyers for top-end property market. Foreigners, including permanent residents bought 162 non-landed units priced $5m and above for the first half of this year.

Foreigners set record highs in the purchase of non-landed property. The figure is 33% in the first eight months of this year, a mark increase from 28% of last year.

Top of the list are the Chinese and Indonesians which make up almost half of the high end purchases. This is followed by the Malaysians, British and Indians. Singaporeans make up only 20% of the purchases of more than $5m in the six months up to June 30.

It was a foreigner who smashed the unit price record this year for a 3,003 sq ft unit at The Marqon Paterson Hill for just under $6,400psf or about $19m

Foreign interests in Singapore property remain strong because: 

1. Singapore is still considered a popular place for business, education, investment and a safe place to live.


2. The Singapore dollar is strong and stable. Foreigners who want to diversify their funds are looking to Singapore to park their money.


3. The only country in Asia to be given a triple A- rating by The Standard & Poor's Rating Services, Singapore is considered a safe investment haven. With Singapore's prudent macroeconomic policies foreign interests will be maintained.


4. As the Western nations economic woes continues, hot money is flowing east


5. Tough cooling measures in countries like China & HK have diverted buying interest to Singapore. More overseas funds are flowing into Asia

Despite the fact that the Singapore Government is expected to tighten immigration policy, foreign talent is still needed to support the country's economic growth. With more foreigners coming in, the interest in the housing market will remain strong.

Experts say that the foreign interest is due in part to the buzz of the two integrated resorts, the country's growing strength as a financial hub, the developed infrastructure, the good quality medical and educational services and many see Singapore as a stable country with a strong government.

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Sylvia Chung is a licensed real estate agent in Singapore. She has many years of experience in the sale & rental of private & commercial properties in Singapore. Go to http://www.ipropertychat.com to check out the Singapore real estate scene.

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