China buyer
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China buyers are soon to come back for Singapore property investment as travel restrictions ease

As the border restrictions in China loosen, China buyers are anticipated to return to Singapore’s home market gradually. According to a report by Huttons, Chinese tourists and home purchasers are likely to return to countries in the Asia-Pacific area, including Singapore, New Zealand, and Malaysia, because China has reopened its borders and lifted its quarantine regulations.

China buyers to set up operations in Singapore

According to reports, Chinese corporations are quite interested in opening up shops in Singapore. And the housing market is expected to contract in 2023 in several markets, including Malaysia and Hong Kong, according to the International Monetary Fund.

According to Huttons, Singapore is likely the only city in the Asia-Pacific area where rising property prices are anticipated in 2023 due to a lack of available inventory.

On the market, 15,777 units were unsold as of the third quarter of 2022, which is roughly 12,000 fewer than the market’s 10-year average of 27,767 units.

China buyer’s gradual rise

After reaching a peak in 2011 with 1,637 non-landed property sales, demand from Chinese nationals is still at a modest level. China buyers. On the other hand, only purchased 227 homes in 2022. Additionally, in the private residential market, the proportion of foreign buyers has halved since 2014, falling from 8.4% to 3.5% by 2022. It’s because of numerous rounds of market cooling measures the government has put in place since 2011 to reduce demand from overseas homebuyers.

When ABSD increased to 20% in 2018, the number of China buyers decreased by 33.8% year over year to 339 units in 2019. The ABSD increased by 30% in 2021.

According to historical patterns, it could take up to two years following a cooling action for Chinese foreigners’ purchases to return to normal.

Economic uncertainty and the prohibitive ABSD of 30% will probably limit demand from China buyers.

About me

I am Tyson Yuk, the founder of the blog Commercial Realty Singapore. With over 15 years of experience, my forte is in the commercial and luxury property line. With my blog, I aim to educate, advise and share tips and tricks with potential property buyers and investors to help them make successful property ventures.

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