Total number of homes bought by foreigners plunged by over 80% since 2011.
BNP Paribas’ trend analysis suggests that foreign buying has deteriorated in 2015, compared to 2014 and 2013. Chong Kang HO, analyst at BNP Paribas, explained that the deterioration can be attributed to three factors: (1) currency weakness in MYR, IDR and RMB, (2) punitive Additional Buyer Stamp Duty (ABSD) of 15% to foreign buyers, even for first homes in Singapore (imposed in 2013), and (3) tight immigration policy to restrict foreign employees to Singapore, which may have partly shrunken foreign buyer pool, in their view. As a result, homes transacted by foreigners fell sharply.
"Given the slack in foreign buying, it becomes clear that the housing market needs to turn to local buyers for support. That said, we are not confident of the strength of local support, given easing of pent-up demand, ongoing credit tightening, and prospects of rising interest rates. All these factors tend to dampen local buyer demand," said Ho.
Do you know more about this story? Contact us anonymously through this link.