Singapore’s real estate landscape has seen a significant shift as Americans surpass Chinese buyers to become the leading foreign purchasers of the country’s private sector apartments. According to a report from OrangeTee & Tie, a prominent Singapore-based real estate company, the trend reflects changes in government policies and the impact of the COVID-19 pandemic.
For several years, Chinese buyers held the top spot among foreign purchasers in Singapore. The surge in their numbers was fueled by an influx of wealth during the COVID-19 pandemic. However, the Singaporean government took measures to curb the real estate market’s overheating by doubling the stamp duty for foreign buyers to an imposing 60%, which stands as the highest rate among major markets.
Moreover, the government implemented additional measures at the end of April, raising taxes for second home buyers. Despite these changes, certain nationalities, including Americans, were granted exemption from the tax increase. Under free trade agreements, these exempted buyers are treated on par with Singaporean citizens. As a result, in the second quarter of 2023, American buyers acquired 56 real estate properties, surpassing the 51 properties bought by Chinese buyers during the same period.
Christine Sun, the Senior Vice President of Research and Analysis at OrangeTee & Tie, predicts that Americans will likely maintain their position as top foreign buyers in Singapore. The exemption from tax hikes gives them a competitive edge over other foreign buyers who might choose to wait until they become permanent residents or opt for non-residential real estate instead.
This shift in the top homebuyers’ demographics signifies a dynamic real estate market in Singapore. With Americans taking the lead, it reflects the country’s enduring attractiveness to foreign investors despite regulatory changes. Real estate remains an appealing asset class in Singapore, and the market’s resilience has continued to attract global attention.
As Singapore navigates its economic recovery post-pandemic, the real estate sector remains a crucial indicator of the nation’s stability and investment potential. The ongoing competition among foreign buyers, especially between Americans and Chinese, underscores the vibrancy of Singapore’s property market. As the year progresses, market watchers eagerly await further developments to see how the landscape evolves and adapts to changing circumstances.