Us Buyers Lead Foreign Demand Singapore Third Straight Year
In the first half of 2024, there were only 64 residential property purchases by foreigners (non-permanent residents) in the Core Central Region (CCR). This was a slight increase from the previous quarter, where there were only 21 foreign purchases of both new and resale non-landed homes. However, the number doubled in the second quarter of 2024, bringing the total to 64 for the first half of the year. According to PropNex Research, the majority of these transactions (56%) were made by US buyers, with a total of 36 caveats, as shown in Tables 1 and 2.
The breakdown of foreign buyers in the CCR in the first half of 2024, based on their nationality and residential status, is shown in the table below. The data was obtained from PropNex Research and URA Realis, covering the period from 2Q2024 till June 24, 2024. It is worth noting that only the top five nationalities have been included in the table.
| Country | Nationality | Residential Status | 1H2024 Transaction Volume |
| — | — | — | — |
| United States | USA | Non-Permanent Resident | 36 |
| China | China | Non-Permanent Resident | 15 |
| India | India | Non-Permanent Resident | 9 |
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| Indonesia | Indonesia | Non-Permanent Resident | 5 |
| Malaysia | Malaysia | Non-Permanent Resident | 5 |
The number of purchases by US buyers in the CCR has been steadily increasing since 2019. In 2022, US buyers surpassed Chinese buyers, with a total of 130 transactions compared to 114 units purchased by Chinese buyers over the same period.
According to Ismail Gafoor, CEO of PropNex, the surge in the number of home purchases by US citizens can be attributed to the fact that they enjoy the same stamp duty treatment as Singaporeans under the free trade agreement (FTA) between the two countries. He also adds that nationals and permanent residents of Iceland, Liechtenstein, Norway, and Switzerland are similarly eligible for the same stamp duty treatment under their respective FTAs with Singapore.
While the market outlook for the rest of the year is expected to remain relatively subdued, Gafoor notes that the average transacted prices of non-landed private homes in the CCR have held up well despite the increase in additional buyer’s stamp duty (ABSD) in April 2023. The data from PropNex Research and URA Realis, covering the period from 2Q2024 till June 24, 2024, shows that the average price of a new sale of non-landed homes in the CCR was $3,273 psf, which is higher than before the ABSD hike in April 2023. Meanwhile, the average resale price of non-landed private homes in the CCR was $2,133 psf, slightly down from $2,172 psf in 2Q2023, as shown in Table 3 – “Average transacted unit prices”.
However, Gafoor observes that the number of new sales of non-landed homes in the CCR has decreased significantly, as shown in Table 3 – “Transaction volumes”. This can be attributed to fewer new launches in the segment due to the implementation of property cooling measures.
Looking ahead, PropNex expects potential upcoming launches in the CCR in 2H2024 to include the 683-unit Marina View Residences, the 186-unit Aurea at the former Golden Mile Complex, and the 367-unit The Collective at One Sophia. In the Rest of Central Region, new launches such as the 366-unit Union Square Residences are expected to come online in 2H2024, according to Gafoor.