A Chinese bidder reportedly paid $85 million for 20 apartments at Canninghill Piers in a bulk sale in June 2022

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Read more: Following the sale of Sloane Residences final four units is now fully occupied

Following the sale of Sloane Residences final four units is now fully occupied

Locally, the property market was abuzz after there was a buzz when the Chinese government announced that it would end its strict travel restrictions to international destinations and quarantine regulations related to pandemics from January 8. It is expected to expect that Chinese property customers will be returning to Singapore in large numbers to invest in real estate. But, a study by real estate company Huttons Asia shows that the rise in Chinese property investors may be less gradual than initially believed.

Since the reopening of borders and lifting the quarantine restrictions that were in place in China travel agents and hotels have seen an increase in inquiries from Chinese travellers. International travel is expected to increase in the coming Lunar New Year festive period that officially begins on January 22. Some of the most sought-after destinations within Asia Pacific include Asia Pacific region for Chinese travelers comprise Thailand, South Korea, Singapore, Malaysia and Australia.

However, Huttons Asia says the economic climate is becoming more challenging because the interest rates in the world continue to increase. Singapore’s headline inflation rate has risen by approximately 6.7% y-o-y as of November 2022. property prices have also increased in the range of 8.4% y-o-y for 2022 and the 3 month Sora price was 3.0019% as of Jan 9. Sora is the term used to describe it being the Singapore Overnight Rate Average, the benchmark rate for interest rates.

The purchasing mood for this year’s foreign buyers, which includes those coming from China is expected to remain cautious due to economic uncertainty and in the face of “prohibitive” 30% ABSD that will likely limit global demand for foreign purchases this year, says Huttons.

Data on transactions compiled by the company indicates that Chinese buyers are making residence property purchase in Singapore were at 1,637 in 2011. The figure dropped 62.2% y-o-y to 618 units sold in 2012 because the government imposed an additional stamp duty for buyers (ABSD) in the amount of% for international buyers, as part of property cooling measures that were introduced in December 2011 to ease the demand from foreign buyers. The subsequent property cooling measures increased overseas purchasers’ ABSD by fifteen percent in 2013% from 2013 up to 20% in the year 2018. In 2021 the ABSD was raised by 30%.

This stamp duty on transactions hasn’t stopped some rich Chinese customers from investing in high-end Singapore housing properties. As of the month June 20, EdgeProp Singaporereported that an unknown Chinese buyer had purchased 20 units in the brand-new luxurious condo Canninghill Piers at Clarke Quay. The total deal is over $85 million with an average of around $2,773 per square foot and the units comprise mostly three- and four-bedroom units spread across several stacks.

In all, 227 non-residential new sales and the resale of properties within Singapore were bought in 2022 by Chinese purchasers in the year 2022. “Singapore is known for being a safe haven… that is favored by investors. There is a keen interest among Chinese companies to establish businesses within Singapore,” says the Huttons report.

Based on a study of transaction information from Huttons The top three projects that are favored by foreign buyers 2022 include Canninghill Piers (51 units sold), Riviere at Jiak Kim Street (49 units sold) of transaction data by Huttons, the top three projects are Riviere at Jiak Kim the Avenir located at River Valley Close (42 units sold). The list also includes projects such as Perfect Ten at Bukit Timah Road Irwell Hill Residences located at Irwell Bank Road, One Pearl Bank at Pearl Bank Road and Pullman Residences Newton at Dunearn Road