More PRs snapping up private homes

Posted by luxuryasiahome on September 11, 2008

Their share in pool of foreign buyers is rising after turmoil in global markets

THE proportion of permanent residents (PRs) in the pool of foreign buyers of

private homes here has been rising since the third quarter of 2007, when the US
sub-prime crisis struck, according to DTZ’s analysis of caveats data from Urban
Redevelopment Authority’s Realis system.

Correspondingly, non-PR foreigners have seen their share of this pool decline from
54 per cent in Q3 2007 to 46 per cent in Q2 this year.

One explanation could be that PRs are more likely to buy Singapore homes for their
own occupation whereas non-PR foreigners may be more inclined to buy for
investment and would hence tend to become increasingly cautious amidst the
volatile global financial markets.

DTZ senior director (research) Chua Chor Hoon expects the trend to continue in the
coming months given the global economic uncertainty.

The property consultancy’s analysis showed that PRs made up 54 per cent of the
total number of 913 private-home purchases by foreigners in Q2 this year captured
by Realis as at early August. This was up from a 51 per cent share in Q1, which in
turn was higher than 47 per cent and 46 per cent shares in the fourth and third
quarters of last year respectively.

Foreigners (including PRs) bought a total 913 private homes here in Q2 2008, up 3
per cent from the preceding quarter. Malaysians overtook Indonesians as the top
foreign buyers of private homes in Singapore in the second quarter.

Malaysians accounted for 19 per cent (172 transactions) of the overall purchases
by foreigners (including PRs), followed by a 17 per cent share for Indonesians.
China and India citizens each accounted for 11 per cent of foreign buyers while UK
buyers had a 9 per cent share.

Projects which received more foreign interest in Q2 include The Lakeshore in

Jurong, Vutton at Akyab Road and Nassim Park Residences. Foreigners (including
PRs) made up 44 per cent of the 55 units sold at The Lakeshore, and about two-
thirds of the 11 units sold at Scotts Square and nine units sold at Martin Place
Residences.

‘The Indonesians favour prime districts 9 and 10. District 15 is popular with all
the five major nationalities because it offers sea views, easy access to the
airport and city, and is a popular residential area even with the locals with its
attractive amenities.

‘The Chinese, Malaysians and Brits also buy into the west. This could be due to
the proximity to the Science Park, industrial estates and National University of
Singapore,’ Ms Chua said.

Source : Business Times - 11 Sep 2008