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Luxury Real Estate in Singapore Draws Rich Chinese

By Sarah ChenChina
1 min read
Singapore Business
Singapore Business
In this article (5)

Rich Chinese continue to snap up luxury homes in the city-state as they seek a safe and calm offshore location to park their wealth.

Protests in Hong Kong are driving rich Chinese property buyers away from the special administrative region to relatively calm and stable Singapore.

The Lunar New Year period is a particularly busy period for property agents in Singapore catering to this group of buyers – three interviewed by the publication said inquiries among mainland Chinese in the lead up to this period typically jump by 15 percent, with demand intensifying in the past two years.

Property cooling measures, which raised the additional buyer stamp duty on foreigners buying any residential property to 20 percent in July 2018, up from 15 percent, have had little effect on the demand for luxury apartments in Singapore – Chinese buyers of apartments S$5 million ($3.7 million) or more doubled in the third quarter of 2019 from the same period the year before, the report said.

Most buyers purchase properties as an investment and prefer those near landmark locations, according to realtors interviewed by the publication. However, they noted that a growing number of buyers are also buying apartments with the sole purpose of parking their wealth here.

Questions & Answers

Q.

What is primarily driving rich Chinese buyers to purchase luxury property in Singapore?

A.

Rich Chinese buyers are seeking a safe and calm offshore location to park their wealth. Protests in Hong Kong are specifically cited as a reason for buyers diverting their interest to Singapore's stable environment.

Q.

Have Singapore's property cooling measures successfully deterred these luxury property buyers?

A.

No, the property cooling measures, which increased stamp duty for foreigners to 20% in July 2018, have had little effect on demand. The number of Chinese buyers for apartments S$5 million or more doubled in Q3 2019.

Q.

What are the main reasons rich Chinese buyers are purchasing these Singapore properties?

A.

Most buyers are purchasing properties as an investment and prefer locations near landmarks. Also, a growing number of buyers are now acquiring apartments solely for the purpose of parking their wealth in Singapore.

Q.

Is there a specific time of year when interest from mainland Chinese buyers typically increases?

A.

The Lunar New Year period is a particularly busy time for Singapore property agents dealing with these buyers. Inquiries among mainland Chinese typically jump by 15% in the lead-up to this festive period.

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