Mainland Chinese Big Buyers of Singapore Homes

[GSLJ]

On Friday 19 August 2011, 12:28 SGT


Mainland Chinese buyers have emerged as the biggest group of foreigners buying residential property in Singapore this year, according to the latest research from global real estate services firm DTZ.


Over April to June, residential property sales grew a strong 20 percent from the previous quarter, with the Chinese buying 640 properties during that period - 100 units more than in the first quarter of the year, according to the report.

Buyers from the Mainland accounted for 26 percent of all purchases made by foreigners.
An agent from Singapore-based HSR International Realtors, Huang Xiao Qiong, told CNBC that she gets on average 10 clients a month from mainland China and so far this year, she has already sold local properties to 20 Chinese buyers.
"They don't get one house, most of them actually get a few," Qiong said. "One will be to stay in, and the rest will be for investment - whether it is to rent or just to keep until the price goes up."
Thirty-two-year-old David Wei, from China's northwestern Heilongjiang province, who has been working in Singapore for the past couple of years, said that he has been looking to buy an apartment in Singapore for some time now.
He feels property prices here are less volatile than in China and has sold his property in China in order to invest in a two-bedroom apartment in Singapore, which he sees as a long-term investment.
According to Qiong, Chinese businessmen like investing in Singapore, attracted by the island nation's good governance and legal system.
"When they have a bit of cash they think it's safer to put it Singapore," Qiong said.
She added that many people from mainland China also like to send their children to Singapore to study. "Many wives and children stay back in Singapore, while husbands spend most of their time doing business in China," Qiong said.
Connie Chai, Assistant Vice President at DTZ Resale, who's sold more than 10 units this year to mainland Chinese clients, said buyers usually look for a three or four bedroom apartment to live in or as a holiday home, but for an investment they prefer to buy smaller one or two bedroom units.


Barter Mu, 39, who has been living in Singapore since 2007 said he decided to buy a two-bedroom apartment in December last year after his family joined him from Shanghai.
"I think the price was reasonable, because otherwise I had to rent," Mu said. "Also for the long term, I think [prices] still can increase, and I can get a profit from the investment."
While growing in popularity with Chinese buyers, Singapore still has some catching up to do compared with Hong Kong, where mainland Chinese accounted for nearly 10 percent of all property sales in the first half of this year, according to one of Hong Kong's largest real estate firms, Centaline Property. Mainland Chinese made up 7.6 percent of total sales in Singapore during the second quarter of this year, according to DTZ.
But foreigners are continuing to drive up demand for high-end residential properties in Singapore. In the second quarter, foreign buyers made up 43 percent of all properties that were sold for S$1.5 million (US$1.2 million) or more. Whereas 75 percent of all properties that cost S$500,000 or less were bought by Singaporeans in the April to June quarter.

[radha08]

abnn also got strong buying power....

[smallant]

They pay Cash ! We use loan ! haha.. How to compare ??

[hyenergix]

Heard of Wenzhou gang? I read with disbelieve (my mistake) in 2007. Now Chinese are the top buyers of our pte properties. They sure have good holding power, judging from the number of vacant (but owned) condos in top tier cities in China.

http://www.escapeartist.com/OREQ20/S...l_Estate1.html

[mr funny]

http://www.straitstimes.com/PrimeNew...ry_703615.html

Chinese again top foreign home buyers

Foreigners and PRs account for 30% of private home sales

Published on Aug 19, 2011

By Cheryl Lim


CHINA nationals have emerged as the top non-Singaporean buyers of private residential properties here for the second quarter running.

They bought a record 640 homes in the three months ended June 30, up from the 527 units they purchased in the first quarter, a private sector report has found.

These buyers accounted for just over a quarter of all purchases by foreigners and permanent residents (PRs) - 26 per cent - unchanged from the first quarter.

Overall, the number of private property deals sealed by foreigners and PRs in the quarter made up 30 per cent of all private home sales, said the report by DTZ Research.

The report's analysis was based on 8,458 caveats lodged for private residential transactions in the second quarter that had been registered as of Aug 5.

With the exception of one landed home in Sentosa Cove, all homes bought by foreigners were non-landed properties. High-end homes made up the bulk of these transactions.

DTZ head of South-east Asia research, Ms Chua Chor Hoon, said Chinese investors are particularly attracted to Singapore because of the language similarities.

'Chinese is spoken here and it's something they feel comfortable with. Many (Chinese buyers) send their children here, so some of them may buy homes for their children and families to stay in,' she said.

Having a place to call home here also makes more sense when Chinese investors do business in Singapore, she said.

'Singapore has always attracted foreigners because of its political stability and strong long-term growth fundamen- tals. A well-planned infrastructure and strong, transparent legal framework also make it a more attractive city as compared with other Asian countries.'

Mr Ma Chi, a tourist on a property tour from China's Dalian city, said the increased presence of Singaporean developers in China has made China buyers more confident in buying homes in Singapore.

Savills Singapore's research head Alan Cheong added that Chinese buyers are likely to remain high on the list of non-Singaporean buyers here because they are always on the lookout for places they can safely invest in during uncertain times.

The report also noted that buyers from other Asian countries bought more units than in the previous quarter.

Malaysians - the second-biggest group of non-Singaporean buyers - bought 496 homes, 66 more units in the second quarter as compared with the 430 homes recorded earlier this year.

Private residential purchases by Indonesians also moved up from 320 to 408 units in the second quarter.

Despite making up a mere 1.6 per cent of non-Singaporean buyers, Vietnamese more than doubled their property deals this quarter, from 17 to 40 units.

Another small but growing market segment is landed properties bought by PRs, which came in at 33 homes, up from 28 last quarter.

But while foreigners and PRs have been more active, the report found that Singaporeans still easily dominate buying, making up 68 per cent of sales.

The other 2 per cent of private home sales were made by companies.

'It's hard to tell if we will see more or less foreigners buying property in the next few quarters,' said Ms Chua.

'Some (foreign buyers) may be more cautious about investing while others may believe Asia is where the growth is going to happen. It also depends on how the economic situation pans out in Singapore and in their home countries.'

[email protected]

[mr funny]

http://www.straitstimes.com/PrimeNew...ry_703612.html

Mainlanders go for location, sea view

Published on Aug 19, 2011

By Esther Teo & Cheryl Lim


CHINESE buyers tend to be wealthy investors looking for a blue-chip investment or those looking for a more affordable home, say experts.

And like all real estate buyers, the mainland property seekers see location as paramount.

Take district 15, which comprises the Marine Parade area. It seems to have caught the eye of mid-end home hunters with agents reporting keen interest from Chinese buyers as the sea view gives it a different feel from other areas.

OrangeTee team associate director Calvin Chao, who brings Chinese buyers here on property tours, said Marina Bay and the Keppel area also boast impressive views and are increasingly in favour.

'They like the brand-name prestige of Marina Bay and the views of Keppel Bay as they are easily able to tell their friends what they bought... In some cases, it is also good feng shui to be overlooking water,' added Mr Chao.

Ms Wendy Tang, Knight Frank's director of residential services, said districts 15 and 16 appeal to buyers on relatively lower budgets.

Chinese mid-end purchases typically cost more than $2 million and consist of apartments of at least three bedrooms for owner-occupiers. Investors chase smaller apartments, agents say.

Homes in the western part of Singapore with its cluster of science and research facilities also appeal to Chinese buyers who work in the area or who might have children studying.

For all the Chinese interest, Indonesians still top the luxury segment in districts 9, 10 and 11 with Chinese and Malaysians sharing second place, said Ms Tang.

OrangeTee's Mr Chao also noted that while there is a wide variety of Chinese buyers, the country's younger entrepreneurs are increasingly directing their 'new money' into the luxury market.

Buyers keen on high-end purchases costing tens of millions of dollars also typically fly in to assess the property before committing.

Chinese buyers, including permanent residents, were the top foreign property buyers in the three months to June 30, the second consecutive quarter in which they led Malaysians, the historical leaders.