Fewer Chinese buying Singapore homes

By Romesh Navaratnarajah: Fewer Chinese nationals bought properties in Singapore, on the back of China's slowing economy and additional stamp duty.

According to caveats lodged with the Urban Redevelopment Authority (URA), Chinese buyers accounted for 259 home purchases in 1H2012, falling to second place behind Indonesians at 372 transactions.

Over the same period last year, 799 homes were bought by the Chinese while Indonesians purchased 614 units.

Moreover, data shows that overseas buyers accounted for just seven percent of all property deals closed in 1H2012 compared to 20 percent last year, mainly attributed to the introduction of the ABSD (additional buyer's stamp duty).

Several agents suggested that some Chinese buyers may now be considering other non-residential alternatives to avoid the 10 percent ABSD.

Meanwhile, Clarence Chow, General Manager at Centaline Singapore, attributed the slowdown in sales to China's economic slowdown.

"We are still seeing a lot of inquiries – it's more or less the same as last year – but the speed of making a purchase decision is slower," said Chow.

Ku Swee Yong, Chief Executive at International Property Advisor, noted that Chinese buyers are now looking at HDB shophouses as well as other commercial spaces as alternatives that provide higher yields.

"There isn't that sense of urgency... Viewings are still happening but the cheque book is not coming out," he said. Related Stories: Consortium wins S$285m bid for Tanah Merah Kechil Road site

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