Remembering Lee Kuan Yew - Thank you - The nation with you in your final journey - See u in heaven

Remembering Lee Kuan Yew - Thank you - The nation with you in your final journey - See u in heaven
Presented to you by Property Smart Investor- A Real Estate Online Education and Discussion

Tuesday, 18 August 2015

Jump in number of M'sian and Chinese buyers of S'pore properties in Q2: DTZ

Jump in number of M'sian and Chinese buyers of S'pore properties in Q2: DTZ
Jump in number of M'sian and Chinese buyers of S'pore properties in Q2: DTZ


SINGAPORE - The number of Malaysian and mainland Chinese buyers of Singapore private homes jumped in the second quarter compared to the first three months of the year, according to research from global real estate services firm DTZ.
"This increased activity coincided with heightened economic uncertainty in China and political concerns in Malaysia," DTZ noted, adding that these buyers were aiming to preserve their wealth.
Purchases by Malaysian buyers rose the most, by 53 per cent q-o-q, to 248 units. Not far behind, were buyers from China who signed for 232 units.
Together, buyers from these two countries accounted for almost half of the purchases by non-Singaporeans in the second quarter. This added up to 1,017 units - 381 units, or 60 per cent, more than in the first quarter, but still below the approximately 1,250 units sold to foreigners in the same quarter last year.
Mr Lee Nai Jia, regional head of research at DTZ, said that the firm had expected to see a drop in the number of Malaysian buyers coming to Singapore given the fall of the ringgit - but the opposite occurred.
He told the Straits Times: "I think all the political issues in Malaysia has hindered some of the structural reforms that were supposed to take place. That has become a concern among Malaysian buyers, moving them towards Singapore."
He added: "They want to make sure that their money and their wealth is intact and doesn't depreciate further."
The reasons driving Chinese buyers were different, he said, as it was probably China's stock market plunge that spooked investors, raising doubts about China's financial stability and security. This would have caused them to see Singapore as a safe haven, said Mr Lee.
Looking forward, DTZ expects the yuan's devaluation to impact Chinese buyers in that it will drive more high net worth individuals to purchase Singapore property. But those whose wealth has been hit by China's stock market rout are likely to stay away.
Mr Lee said that DTZ would have to see whether the increase in Malaysian purchases would continue, but he added that Malaysians "continue to form one of the main non-Singaporean buyers, especially in the prime district."
DTZ's report showed that Singaporeans continued to represent the bulk of home buyers in the second quarter at about 77 per cent, unchanged from the same quarter of 2013 before tougher mortgage curbs were implemented.
The Straits Times / Business                                                                            Published on Tuesday, 18 August 2015                 By Jose Hong                                                                                                                                                                          Jump in number of M'sian and Chinese buyers of S'pore properties in Q2: DTZ