More Chinese Investors Entering S’pore Property Market

More Chinese Investors Entering S’pore Property Market

Singapore: More and more Chinese investors are buying properties in Singapore. This is according to a DTZ property consultant.

Most of these buyers come from mainland China. Among the non-Singaporeans in Singapore, the Chinese comprise 20 per cent of the population here as recorded for the third quarter. They have been increasing in number since 2009.

This brings them to a level with the Indonesians who have been recorded as the second largest group of non-Singaporean buyers. The first group is composed of Malaysians who compose the 21 per cent of non-Singaporean buyers. The Malaysians top the list.

According to the DTZ more of the buyers are going for the smaller-sized units. These units are called the “Mickey mouse” units. They are so-called because of their size. This is according to the Head of DTZ South East Asia Research She says these “Mickey mouse” units have been gaining popularity since 2009.

These units measure below 500 square feet. In the third quarter of this year, the number of smaller-sized units increased from 349 to 625 in the previous three months. 87 per cent of the total of 625 units were bought directly from the developers.

One of the reasons why people are turning their attention more on the smaller units is because of the restrictions imposed by the government. These restrictions were imposed in order to curb speculations in the real estate market. Another reason is the tight controls implemented by the banking institutions. It is getting more difficult to borrow from the banks. Those who had existing home loans were expected to deposit more cash for the additional units that they were intending to purchase. Because of this, more buyers were attracted to purchase smaller units. By buying smaller units, they will have to put out a smaller amount of deposit.

This sales report is based on research made on new and secondary sales. The level of secondary sales has now stabilized between 9 and 12 per cent since September 2009. September 2009 was the time when the government started to impose controls and restrictions in order to prevent a real estate bubble.

Also. the level of investors who were buying into the prime or Group A properties has gone down. The level of prime property purchases dropped to 16 per cent in the third quarter as compared to 25 per cent in the period from January to March.

A reason for this is the growing number of smaller units that were being sold in the market and which were more practical and attractive for the buyers. Another reason is that there were fewer launches for prime properties. This means that there were fewer Group A properties being developed at that time.

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Mindy Yong

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Bounce back in land prices for EC housing »« HDB receives two bids for Upper Serangoon Road DBSS site

HDB receives two bids for Upper Serangoon Road DBSS site

HDB receives two bids for Upper Serangoon Road DBSS site

The Housing Development Board (HDB) has got two bids for the deal of a location at Upper Serangoon Road.

The 20,000 square metre site is nominated for public residence under the Design, Build and Sell Scheme (DBSS).

It was propelled in October while the tender closed at 12 noon on Tuesday.

Kwan Hwee Investment ended in the topmost bid at S$155 million that tends to about S$2,217 per square metre.

While, Sim Lian Land bids $113 million dollars for the site.

Under DBSS, plot for public housing development will be offered out openly to private developers by HDB on a 99-year lease.

The fruitful bidder will commence the whole development from planning, design and construction, to the deal of the apartments.

HDB told it will estimate the interim tender consequences and declare the concluding results within the coming two weeks.
Even though economy of Singapore has improved powerfully, the Lehman Brothers minibond saga two years before which resulted in severer guideline of fiscal organizations was also raised.

In that account in 2008, depositors were wholesaled toxic goods and about 3,900 people got back $107 million after a misleading auctions probe.

In the outcome, the Monetary Authority of Singapore (MAS) likewise understood the necessity for severer financial guideline and rolled out proposed variations.

If government over-regulate, the market may not ever take off, and may never endure after a few months. So there should be a delicate equilibrium inn order to ensure that there is sufficient guideline to diminish the risks but at the same time, the risks that people take are is the main investment so that the market can survive, said by Mrs L who is the Second Minister for Finance and Transport.

In such a case, the MAS has executed firmer guidelines so the narrowing of the rules is one significant feature. The other area is that of reimbursement – how much compensation there should be. The MAS has functioned with all the banks and they have went through a very thorough examination and set up a procedure wherein the stockholders can approach the banks from where they bought the bonds from and submit a appeal for reward, she added.

“The banks would have to decide whether the investor, at the point of making the investment, has been misled. And some of them have gotten the full compensation. You can’t have a blanket ruling where you say that for Lehman Brothers (case), every (investor) must get 100 per cent compensation or 50 per cent. A lot depends on how knowledgeable the person is at the point of investing. That is how the MAS approached the whole problem with all the banks.”

Sunday’s appointment to Kampong Chai Chee as well saw some fresh PAP activists aiding ministers at their outlet and attaining an idea of matters on the ground.

Buy Sell Rent invest In Singapore Property Real Estate

Mindy Yong

( +65 ) 91002985

Mindy@MindyYong.com

www.hotvictory.com

www.property-elite.com

More Chinese Investors Entering S’pore Property Market »« Retail stays stable with marginal upside in next 12 months