Malaysian buyers have overthrown the Chinese from the top spot among the largest foreign property buyers in Singapore.
According to a recent report by DTZ Research, Malaysians recorded a total of 362 transactions, marking a 28 percent share among foreign buyers, which may be attributed to the larger number of Malaysian Permanent Residents (PRs) in the country.
On the other hand, the Chinese, including permanent residents (PRs), acquired only 292 homes in Q1, which is 54 percent down from the 640 homes in Q4 last year, aside from being the lowest volume in over two years.
Consequently, the proportion of Chinese buyers relative to non-Singaporean buyers dropped to 23 percent from 29 percent from the last quarter, which is the sharpest decline among all foreign nationalities.
Figures have soared for Malaysia amid the cooling measures introduced in December, which included a 10 percent ABSD (additional buyer's stamp duty) to all home purchases made by foreigners. Meanwhile, PRs were required only an extra three percent on their second and subsequent home purchases.
As a result, demand from non-permanent resident foreigners bottomed 75 percent to 336 units only, or a three- year low of just six percent. The remaining 78 percent accounted for Singaporean buyers while 16 percent went to PRs.
The DTZ noted that the decline in proportion of foreign purchases post-ABSD was more drastic compared to 17 years ago when a major policy change was rolled out. In Q3 1996, foreign purchases fell by a smaller percentage, 57 percent, following the government's restriction on extension of loans to PRs and foreigners.
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