After the end of “circuit breaker” lockout by Singapore government in June, Hong Kong property buyers and other expats have flocked to Singapore, helping to raise the property sector of the city-state.
Among them was David, a top global investment fund boss, who was pleased that the rent for his lush backyard six-bedroom home in Singapore cost two-thirds of the price of his three-bedroom apartment in Hong Kong, the Financial Times published (FT).
“As quoted by FT, “The family enjoys the extra room,” said David, who declined to reveal his real name. “We are looking at purchasing now.
The switch to Singapore by Hong Kong property buyers comes when the COVID-19 pandemic and the latest national security legislation passed in June decreased the appeal of Hong Kong, thus rendering the safety of Singapore more important.
The city state promises low taxation and one of the world’s most linked airports, apart from a solid rule of law.
“Despite the pandemic in terms of real estate, Singapore is in a good position to ride out the wave after the implementation of cooling measures by government to cub speculation.” quoted PropNex CEO Ismail.
He referred to the successful management of the COVID-19 pandemic by the city-state.
In reality, high-end property transactions have been on the rise, even as the government enforced a lockdown in 2nd quarter of 2020.
Data from the Urban Regeneration Authority revealed that during the first nine months of the year there were 2,362 transactions inside the core central area where the highest-priced homes could be located, up from 1,962 during the same time last year.
This is amid the reality that, owing to the pandemic, the city state has sunk through its first ever contraction following the global financial crisis. In the second quarter of 2020, Singapore’s economy declined by 13.2 percent year on year and by another 7 percent year on year in the third quarter.
260 units of the overall revenue generated in the first nine months of 2020 were snatched up by foreigners. Although they were far smaller relative to the 316 units sold in 2019 for the same period, Gafoor said it was still “considerable” considering that the COVID-19 pandemic has rendered it incredibly challenging for most of the year to buy a home.
He noticed that buyers accounted for 75 percent of international buyers from China or Hong Kong.
Overseas revenue soared after the end of the circuit breaker steps in June, Cushman and Wakefield’s Research Head, Christine Li, said. Foreigners’ non-landed sales typically including condominiums or residences, decreased in March, April and May.
In June, the pattern flipped, with revenue rising by more than 200% from May, while July and August reported rises of 33% and 5% month-on-month.
Year-to-date according to official statistics, private residential prices in Singapore rose by 1 percent. Li said the core central luxury sector saw prices decline by 3.4%, this was slightly compensated by price gains in the region and suburbs, where prices increased by 0.3% and 1.4%, respectively.
Ella Sherman, Executive Sales Director of Knight Frank, said she recently working on a British expat couple who were born and raised in Hong Kong but had since moved to Singapore.
When more Hong Kong companies migrate to Singapore, revenues have picked up,” she said, noting that a lot of her clients are in private equity.” “The influx of Hong Kongers may lead to a price-asking uplift.”