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05-07-12, 18:12
http://www.businesstimes.com.sg/specials/property/absd-exempt-share-home-buying-edges
Published July 05, 2012
ABSD-exempt share of home buying edges up
But volume down in segment as overall market sees drop in foreigner purchases
By michelle tan
[SINGAPORE] The share of home purchases made by buyers from countries exempted from the additional buyer's stamp duty (ABSD) has inched up in the first half of this year.
Foreign buyers (including permanent residents) hailing from ABSD-exempt countries because of bilateral free-trade agreements, such as the US, Switzerland, Norway, Iceland and Liechtenstein, accounted for 3.1 per cent of home purchases made by non-Singaporeans in the first six months of the year. This compares with 2 per cent and 2.6 per cent in the first halves of 2011 and 2010 respectively, data compiled by CBRE showed.
US buyers have been particularly active in the local property scene, emerging as one of the top five foreign buyers of properties here in the first quarter of 2012, displacing Myanmar from the rankings.
Said Alan Cheong, Savills Singapore head of research: "For US buyers, they could still be participating relatively strongly because their economy is performing well."
However, in terms of absolute numbers, the volume of transactions made by exempt foreign buyers has been on a downtrend, leading some consultants to believe that the health of the economy could perhaps be a greater influence on buying behaviour rather than cooling measures.
"The volume of foreign buying, especially those in prime districts, had in fact shifted down gear even before the ABSD was introduced, largely on the back of the weakening global conditions," said Chua Yang Liang, Jones Lang LaSalle's Singapore head of research.
Having said that, industry watchers pointed out that the volume of transactions from the pool of exempt buyers made up a very small part of the market and did not reflect the overall market.
What's certain is that ABSD has been effective in reducing the number of foreigners from all countries buying properties here.
An estimated 1,374 foreigners (excluding Singapore permanent residents and companies) bought residential properties in the last quarter of 2011. But the numbers plunged to 345 and 334 in the first and second quarters of this year respectively, representing a quarter-on-quarter decline of 75 per cent and 3 per cent for the respective periods, data from URA Realis showed.
The government introduced the ABSD as a "targeted and measured move to moderate investment demand (from overseas) in order to avoid the need for a major correction down the road".
Published July 05, 2012
ABSD-exempt share of home buying edges up
But volume down in segment as overall market sees drop in foreigner purchases
By michelle tan
[SINGAPORE] The share of home purchases made by buyers from countries exempted from the additional buyer's stamp duty (ABSD) has inched up in the first half of this year.
Foreign buyers (including permanent residents) hailing from ABSD-exempt countries because of bilateral free-trade agreements, such as the US, Switzerland, Norway, Iceland and Liechtenstein, accounted for 3.1 per cent of home purchases made by non-Singaporeans in the first six months of the year. This compares with 2 per cent and 2.6 per cent in the first halves of 2011 and 2010 respectively, data compiled by CBRE showed.
US buyers have been particularly active in the local property scene, emerging as one of the top five foreign buyers of properties here in the first quarter of 2012, displacing Myanmar from the rankings.
Said Alan Cheong, Savills Singapore head of research: "For US buyers, they could still be participating relatively strongly because their economy is performing well."
However, in terms of absolute numbers, the volume of transactions made by exempt foreign buyers has been on a downtrend, leading some consultants to believe that the health of the economy could perhaps be a greater influence on buying behaviour rather than cooling measures.
"The volume of foreign buying, especially those in prime districts, had in fact shifted down gear even before the ABSD was introduced, largely on the back of the weakening global conditions," said Chua Yang Liang, Jones Lang LaSalle's Singapore head of research.
Having said that, industry watchers pointed out that the volume of transactions from the pool of exempt buyers made up a very small part of the market and did not reflect the overall market.
What's certain is that ABSD has been effective in reducing the number of foreigners from all countries buying properties here.
An estimated 1,374 foreigners (excluding Singapore permanent residents and companies) bought residential properties in the last quarter of 2011. But the numbers plunged to 345 and 334 in the first and second quarters of this year respectively, representing a quarter-on-quarter decline of 75 per cent and 3 per cent for the respective periods, data from URA Realis showed.
The government introduced the ABSD as a "targeted and measured move to moderate investment demand (from overseas) in order to avoid the need for a major correction down the road".