Huttons Asia: Singapore residential market to see gradual increase of Chinese buyers in 2023

As global interest rates continue to climb and Singapore’s headline inflation increases by close to 7% compared to the same time last year, the rebound in Chinese-based property investments might be more gradual than initially anticipated. Senja Close EC Although the Chinese government ending strict travel restrictions and pandemic-related quarantine rules from Jan 8 had locals abuzz, the property market could still face unfavourable economic factors as we enter 2021.

With Chinese citizens eager to travel abroad as we enter the Lunar New Year period, countries like Thailand, South Korea, Singapore, Malaysia, and Australia could all be popular spots for holiday-goers this year. But a prediction from Huttons Asia shows that buying sentiment among foreign investors – especially Chinese buyers – could be more subdued due to economic uncertainty and the “prohibitive” 30% ABSD imposed on foreign buyers.

In fact, Chinese property purchases in Singapore have dropped over the years due to the ABSD in place: from 1,637 units in 2011 to 618 units in 2021, as the government’s cooling measures continued to be enforced. Still, some wealthy Chinese investors remain confident in buying high-end residential properties in Singapore, with EdgeProp Singapore reporting an astonishing $85 million deal in June 2022. The figure was generated from the acquisition of 20 units at the luxury condominium Canninghill Piers at Clarke Quay – mostly three- and four-bedroom apartments.

Data compiled by Huttons also showed that the top three projects favoured by foreign buyers in Singapore this year were Canninghill Piers, Riviere at Jiak Kim, and The Avenir at River Valley. Other upmarket projects that have seen impressive sales figures include Perfect Ten, Irwell Hill, One Pearl Bank, and Pullman Residences Newton.

The Chinese property market’s performance in 2021 is expected to be a mixed bag, as a mixed economic climate and the ABSD imposed on foreign buyers might dampen overall foreign buying demand. Still, with the current easing of travel restrictions, it could create the opportunity for increased investment.