In March 2021, the purchase of 20 units at a condominium complex for $293m by one of a well-known Taiwanese family indicate that overseas buyers are returning to the Singapore property market after a long and uncertain pandemic period.
The reason behind the astonishing sales worth more than $10m just in the first six months of 2021 was the purchase of the Eden complex by none other than the Tsai family. This is a lot more than the sales recorded in the same 2019 and 2020 combined, stated by global estate agency Knight Frank.
Singapore has always been an attraction for all investors looking to invest their money in overseas property. Stable currency value and low taxes have played a major role in that. But with the damage done by COVID 19 in 2019 and 2020 gave a major setback to these investments. And with the change in visa policies and travel restrictions by the government, the situation got worse as some companies had to raise their salaries to adhere to compliances.
Due to an excellent vaccination ratio of more than 90%, things are gradually getting back to normal. They have also allowed quarantine free travelling policy from some countries, including China, Hong Kong, and Taiwan, and quarantine at home for low-risk countries.
Talking about other policies, get-togethers are still under consideration, and masks are mandatory like many other countries while cinemas, restaurants, and malls are open. However, compared to the first six months of 2020, the property market of Singapore jumped more than 6 percent compared to Hong Kong, with a rise of 2.1 percent. And there’s more that may surprise you, and from January to August this year, private residential property sales exceeded $ 45B, the best volume in ten years!
Chinese have been very interested in buying properties in some very busy areas of Singapore, and it is expected to increase even more shortly, as stated by Christine Sun. And as we look at the second quarter, a huge port of buyers were mainly from UK, USA, France as stated by OrangeTee & Tie data, from which 67% are only Americans as well as the UK, which has an average of more than previous two years of 19.
Foreigners can only purchase landed properties at Sensota Cove, and there were 56 sales during 2020. However, many foreigners are coming to Sentosa, mainly due to the increase in remote working more attractive. Moreover, a British lawyer has stated that purchasing a property in Singapore is easier and cheaper than in London. He has also purchased an apartment in August to live with his family.
But many foreign buyers are facing some issues in buying properties in Singapore after the pandemic. Last month, Lee Hsien said that Singapore would continue to lift gradually and progressively to ensure that locals don’t miss out on jobs.
But on the other hand, according to TY Shao, “Singapore has a strict policy when it comes to employment passes, and that is only increasing throughout Covid, and Visa renewals are also taking longer up to 2 to 3 months,” which is the founder of Seek out. Besides, Shao says that this approach is frustrating a lot of companies and individuals and may become a usual thing!
There are many restrictions on overseas buyers on properties that they can purchase in Singapore. However, non-permanent residents can purchase Apartments in some areas like Sentosa, and on the other hand, permanent residents can buy properties with less or no limitations.
If you have any enquiries or clarifications regarding buying property in Singapore please contact us for a non-obligatory consultation.