The April 2023 property cooling measures saw the raised the Additional Buyer’s Stamp Duty (ABSD) rates for foreigners from 30% to 60%. And according to the PropertyGuru Singapore Property Market Report Q3 2023, they were successful in tempering demand among foreign buyers and investors.
Wondering how much the April 2023 property cooling measures affected foreign purchases of non-landed private property? We compared transactions over time to find how transaction volumes and prices have shifted!
Foreign Purchases of Non-landed Private Property in Singapore: Q2 2023 Vs Q2 2022
The last time we analysed which condos foreigners were buying in Singapore was in Q2 2022, shortly after the December 2021 property cooling measures had kicked in. At that time, the ABSD rates for foreigners increased from 20% to 30%.
You’d think foreigners might think twice before buying condos in Singapore – but surprise! Urban Redevelopment Authority (URA) real estate statistics showed a 103.5% quarter-on-quarter (QoQ) increase in transaction volumes in Q2 2022 compared to Q1 2022.
In tandem, there was also a 3.6% QoQ increase in prices of non-landed private property prices. The increase in transaction volumes and prices could have been partly attributed to more foreign investors doubling down on the Singapore property market and making moves to purchase a property,
Of course, the ABSD hikes in December 2021 were much smaller than those in April 2023 and foreign buyers responded differently to the two rounds of cooling measures. According to the URA caveats lodged (accurate as of 20 August 2023), there were 108 transactions of non-landed private property made by foreigners in Q2 2023. This is a noteworthy drop from the 265 units that were transacted in Q1 2023 (i.e. a 59.2% QoQ decrease in transaction volume among foreign buyers). This affirms that the 60% ABSD tax made foreigners think twice before snatching up condos in Singapore.
Nevertheless, we all know that Singapore remains a draw among foreigners. Let’s take a closer look at where exactly foreign investors in Singapore are continuing to park their wealth.
Which Districts Are Foreigners Buying Non-landed Private Properties in?
| Quarter | Number of non-landed private property transactions among foreigners in the Core Central Region (CCR) | Number of non-landed private property transactions among foreigners in the Outside Central Region (OCR) | Number of non-landed private property transactions among foreigners in the Rest of Central Region (RCR) | Total |
| Q1 2023 | 163 | 43 | 59 | 265 |
| Q2 2023 | 59 | 2 | 47 | 108 |
In Q2 2023, there was a QoQ decrease in the number of non-landed private property transactions observed across all regions islandwide for foreign buyers. Among them, the dip in transaction volume in the RCR was the least, recording a 20% QoQ drop. This was likely due to the pickup of Q2 2023 major new condo launches (e.g. Blossoms By The Park, The Reserve Residences, Tembusu Grand, and The Continuum).
In Q2 2023, prime districts D9 and D10 came in top spots for seeing the most transactions – 20 and 21 units, respectively. Districts in the RCR were the subsequent top-performing districts: D15 saw 13 transactions, D11 saw 12, D5 saw 10, and D7 and D21 saw 8 each.
Wonder which condos and luxury properties emerged most popular among them in Q2 2023? Read on to find out!
10 Most Popular Condos Among Foreigners in Q2 2023
Condos in the CCR and RCR were most popular among foreigners in Q2 2023. Klimt Cairnhill and Pullman Residences Newton, both located in the CCR, took top spots, selling 12 and 10 units, respectively.
Blossoms By The Park and The Reserve Residences, which were Q2 2023 major new condo launches, sold 9 and 8 units to foreigners, respectively.
Which Foreigners are Buying the Most Condos in Singapore?
This quarter, Americans overtook mainland Chinese as the largest group of foreign buyers in Q2 2023, with 58 transactions made by Americans and 53 by Chinese buyers.
Dr Lee Nai Jia, Head of Real Estate Intelligence, Data and Software Solutions, PropertyGuru Group pointed out, “Thanks to their eligibility for ABSD remission under the Free Trade Agreement (FTA), the dip in American purchases from Q1 2023 to Q2 2023 isn’t as pronounced as Chinese buyers, since they aren’t as affected by the recent cooling measures.
Our PropertyGuru proprietary data also shows that US visitors are the top foreign viewers on our website for CCR properties in Q2 2023. Singapore continues to captivate US buyers, particularly among US expatriates working in the city-state.”
Maybe after reading this article, you may be interested in buying a condo in Singapore. Whether you are a foreign buyer or a local investor, you will need to figure out how to finance your property purchase. For those who need some home financing guidance, reach out to our PropertyGuru Finance Mortgage Experts.
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