SINGAPORE: Recent data reveals that American buyers have surpassed Chinese buyers as the largest group of foreign purchasers of private apartments in
SINGAPORE: Recent data reveals that American buyers have surpassed Chinese buyers as the largest group of foreign purchasers of private apartments in Singapore.
According to a July 20 Bloomberg article citing figures from Singapore real estate agency OrangeTee & Tie, American buyers acquired 56 properties in the second quarter of 2023, while Chinese buyers purchased 51. This marks a significant shift, as Chinese buyers had held the top position since 2016.
In April, Singapore implemented a substantial increase in stamp duties for foreign buyers, raising the rate from 30% to 60%, making it the highest among major global markets. The Ministry of National Development stated that the increase aims to “dampen both local and foreign investment demand” to prioritize local homeownership. They also noted that foreign residential property purchasers in Singapore come from a diverse array of countries.
However, due to free trade agreements established about a decade ago, citizens from specific countries—including the US, Iceland, and Norway—benefit from the same stamp duty rates as Singapore citizens.
Traditionally, US nationals have not been significant players in the Singapore property market compared to buyers from countries like China and Malaysia. Nicholas Mak, Chief Research Officer at real estate platform MOGUL.sg, remarked that American buyers typically invest in properties within their own country or in the UK.
Nevertheless, because US citizens are less impacted by the recent duty hikes, they are likely to remain among the top foreign buyers in Singapore, as noted by Christine Sun, Senior Vice President of Research and Analytics at OrangeTee & Tie. She mentioned that other foreign buyers might delay their purchases until they obtain permanent residency or choose to invest in non-residential properties instead.
Interestingly, just two days after the announcement of the increased taxes on foreign buyers, Blossoms by the Park, a new condominium at Slim Barracks Rise, launched and saw interest from both Chinese and American buyers.
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