Singapore luxury apartment sales surge to 11-year high

Chinese investors are turning to Singapore as a safe alternative to rival hub Hong Kong. (Shutterstock)
Updated 20 September 2019

Singapore luxury apartment sales surge to 11-year high

  • Sales of such apartments also exceeded the numbers racked up for each full year from 2011 to 2018, the consultants’ analysis of transaction data shows

SINGAPORE: Sales of Singapore apartments worth at least S$10 million ($7.3 million) have hit an 11-year high, fueled by increased demand from Chinese millionaires seeking safe-haven assets, say property consultants OrangeTee & Tie.

Investors have long viewed Singapore as an island of stability that attracts the super-rich from its less developed Southeast Asian neighbors, as well as multimillionaires from mainland China.

In the first eight months of 2019, 68 condominium units in the wealthy Asian city-state were sold for S$10 million and more, the highest tally since the corresponding period of 2008.

Sales of such apartments also exceeded the numbers racked up for each full year from 2011 to 2018, the consultants’ analysis of transaction data shows.

Some buyers may have sought an alternative to rival financial hub Hong Kong, hit by protests, while others may have shifted funds from China after its yuan currency was devalued in a trade war with the US, an OrangeTee expert said.

“This may explain why we have observed more foreign buyers, especially mainland Chinese, coming into Singapore lately,” said Christine Sun, its head of research and consultancy.

Mainland Chinese are the biggest group of foreign buyers of Singapore luxury homes.

In Singapore’s prime districts, Chinese citizens bought 76 apartments worth more than S$5 million from January to August, versus 75 purchases by Singaporeans, data until Sept. 19 show.

Expensive apartments in premium neighborhoods are mainly bought by foreigners, because at such high prices Singaporeans have the option to buy landed property, such as bungalows and mansions.

Singapore does not allow foreigners to buy landed homes, except for those on the resort island of Sentosa.

“We do see that even though the stamp duties have increased .... we are still seeing people putting big money on these apartments, predominantly it is more for stability than anything else,” said Boon Hoe Leong, chief operating officer of high-end realtor List Sotheby’s International Realty.

He was referring to measures Singapore adopted last year to cool its real estate market, such as hiking additional stamp duties for foreign buyers to 20 percent from 15 percent.

“They are parking their money here — they know that the Sing dollar won’t depreciate overnight,” he added. 


Britain must accept EU standards if it wants full market access: Germany’s Maas

Updated 29 January 2020

Britain must accept EU standards if it wants full market access: Germany’s Maas

  • ‘By the end of the year, we need to be clear on the shape of our relationship’
  • Referring to the Beatles song “Hello, goodbye,” Maas said that both sides had sorted out the goodbye

BERLIN: Britain will have to compromise on issues such as consumer rights and environment protection if it wants to maintain full access to the European Union’s single market, German Foreign Minister Heiko Maas said on Wednesday.
“By the end of the year, we need to be clear on the shape of our relationship,” Maas wrote in a guest article in German weekly Die Zeit in reference to the post-Brexit transition period.
“So let me say very openly: Yes, we all want zero tariffs and zero trade barriers, but that also means zero dumping and zero unfair competition. Without similar standards to protect our workers, our consumers and the environment, there can be no full access to the largest single market in the world.”
Britain and the European Union will therefore have to conduct the negotiations on their post-Brexit economic relations in a way that “won’t harm the European Union,” Maas said.
Turning to security and defense policies, the minister said that Britain and the EU needed to develop new forms of cooperation, for example by creating a European Security Council.
Such a council could help coordinate joint positions on strategic issues of European security and to respond more quickly to international crises. “We are working with France to flesh out this idea as quickly as possible in order to build a foundation for our future relationship,” Maas wrote.
The German minister also suggested that the EU’s door would always remain open for Britain to come back.
Referring to the Beatles song “Hello, goodbye,” Maas said that both sides had sorted out the goodbye.
“But should this farewell ever turn out to be less final than anticipated, rest assured that we will always have a place for you at our table in Brussels and in our hearts,” he added.