Home developers to benefit from heightened foreign buyer interest: experts
Home prices in the region grew by 1.6% in the second quarter of 2022.
As wealthy Asians turn to Singapore for private home investments, home developers in the Core Central Region (CCR) may benefit from foreigners' increased demand, real estate experts said.
Knight Frank Research Head Leonard Tay cited that price growth in home prices in the CCR region coincides with the reopening of air travel lanes from April 2022 onwards.
Despite raising the Additional Buyer’s Stamp Duty for foreigners, high-net-worth individuals in Asia are still demanding luxury properties in prime areas in Singapore, which will help developers with projects in the CCR to sell the remaining stock of units in their new launches.
“Examples of foreign home buyer interest include the purchase of 20 units at CanningHill Piers for over $85 million by a Chinese national, as well as an Indonesian family reported to be in exclusive due diligence to buy 22 units at Draycott Eight,” said Tay in a statement.
Data from the Urban Redevelopment Authority showed that prices of non-landed private residential properties in the CCR went up by 1.6% in the second quarter of 2022, compared to a 0.1% decline in the past quarter.
The reopening of borders, which also allowed foreign homebuyers to return, also supported an increase in prices in CCR, Huttons said.
“The CCR, which tends to see more foreign buyers, saw prices firming by 1.6% in 2Q 2022,” it said.