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Foreign buyers have continued to purchase luxury condominiums in Singapore despite the hike in interest rates and the implementation of cooling measures.

According to a report by real estate enterprise OrangeTee & Tie, foreigners bought 143 condominiums at a price of S$5 million and above from January to August 2022, compared to 51 such transactions in the same period for 2020 and 136 for 2019.

The report also noted that the proportion of foreign buyers for total condominium purchases for this period is at 4.3 per cent, up from 3.8 per cent from January to August 2021.

Cooling measures unlikely to deter High Net Worth individuals from buying properties in Singapore

In December 2021, the government announced cooling measures for the private residential markets.

However, the report pointed out that luxury properties in Singapore continue to be viewed by foreign buyers favourably.

According to OrangeTee & Tie, despite the increased Additional Buyer’s Stamp Duty (ABSD), some buyers consider luxury properties here to be cheaper compared to other cities, given that prices have similarly increased in those places.

Another round of cooling measures announced on Sep. 30 are also unlikely to be significant to High Net Worth individuals as they have "sufficient" cash or capital, the report added.

It said, "With a strengthening Singapore dollar amid the growing economic uncertainties, properties here will continue to be regarded as safe-haven assets."

Mainland Chinese are the biggest foreign buyers

Mainland Chinese have bought the most number of condominiums in Singapore for 2022, compared to other foreigners.

From January to August 2022, buyers from China bought 932 non-landed homes, followed by buyers from Malaysia with 566 units.

This is followed by 324 units for buyers from India, 203 for those from the U.S. and 194 for those from Indonesia.

It suggests that high net wealth individuals are not deterred by from buying property in Singapore, despite cooling measures and interest rate hikes in 2021.

422 condominiums that cost at least S$5 million sold

In addition, nearly 20 per cent of luxury condominiums priced at S$5 million and above were bought by buyers from China within the same period.

OrangeTee & Tie highlighted that 422 of such condominiums in total were sold during these eight months.

Out of these, 81 units or 19.2 per cent of these condominiums were bought by Mainland Chinese, including seven units worth at least S$10 million.

Another 34 units were bought by buyers from the U.S., followed by buyers from Indonesia who bought 28 units.

Each of these figures also includes seven units worth at least S$10 million.

The report further noted that the majority of Mainland Chinese buyers, or 75.6 per cent of them, bought condominiums ranging from S$800,000 and to S$3 million.

Around 81.5 per cent of Indian buyers also bought their condominiums within the same range.

Meanwhile, 88 per cent of Malaysian buyers bought condominiums at less than S$2 million.

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Top left photo via Wallich Residence/Instagram, right photo via CanningHill Piers