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Are you thinking to purchase a property in 2018? You may just want to do so in the near future rather than later, as experts are forecasting that cost in the property market will raise by up to ten percent in the upcoming year.
Though the property cooling systems that are in place, UOB Kay Hian believes the prices of the units in Singapore to increase by 5 to 10 percent in year 2018. Expecting that property costs will raise by 10 percent by the end of year 2018, Morgan Stanley concurs.
According to REITS of UOB Kay HIan and Director Vikrant Pandey in Asean and Hong Kong Property, the upsurge in property costs is somewhat to be high-end and mid-range segments. This will be compelled by “replacement appeal from redevelopment of old housing developments, and a pick-up in home-purchasing interest from foreigners”, as said by Pandey.
Why foreigners are expected to contribute considerably to the property market in the coming year? The Additional Buyer’s Stamp Duty of Singapore (to be specific, 15 percent) imposed on foreigners is moderately conservative when differentiating from Hong Kong’s stamp responsibility on foreign property purchasers (which just doubled to 30 percent), together with Taiwan’s disciplinary divestment-gains tax (that is up to 45 percent).
As stated by the Urban Redevelopment Authority (URA) on their statistics report, the acquisitions by foreigners raised by 48 percent from the first half of year 2017, comparing to that in year 2016. In addition to this, purchases by the stable occupants also rose by 32 percent during the same time period. Property buying by foreigners are compelled mostly by the Malaysians, Indians, Indonesians, Chinese as well as the Americans – here’s what they are purchasing in the local property market:
#1: Chinese
Since China’s country is booming, this perhaps doesn’t come as a surprise. As stated by the statistics from URA, developments costing between $1 million and $500,000 million are the most admired among Chinese purchasers; this is carefully followed by the properties varying between $1 million and $1.5 million. Chinese purchasers also like the properties in districts 19, 5 and 23.
#2: Malaysians
Comparing to Chinese, Malaysian buyers are mostly admired the properties which range between $500,000 million and $1 million. Their favored areas are districts 19, 18 and 27 (the latter includes of Sembawang and Yishun, which are closer the Causeway).
#3: Indonesians
Most of the Indonesians buyers are purchasing properties which price between $1 million and $500,000 million, we are now looking for more of them (11 percent, to be accurate) buying higher end properties pricing up to $3 million. Additionally, 10 percent of Indonesian purchasers are dropping their money into properties which price $5 million and higher than that. Among Indonesians, they prefer to choose the locations on districts 9, 10 and 19.
#4: Indians
The Indian investors look after to prefer city fringe developments, that are placed reasonably close the Central Business District (CBD) without being valued at a premium. Most of the Indian investors are buying properties in districts 16, 15 and 18, and most of the Indian buyer snap for properties that costs within the $500,000 million to $1 million range.
#5: Americans
The American buyers, who are qualified for ABSD remission, have always been one of the top foreign buyers of Singapore’s property. Maybe it’s due to the fact that they aren’t legally responsible to pay the ABSD, but American purchasers tend to use up more on property, with most of them buying properties which varies between $1 million and $1.5 million. They also like the properties located in prime districts, together with districts 9, 10, and 15.
Nevertheless, wherever nation you belong or whatever nationality you have, its still good to choose the best property to invest your money.
