Foreigners looking to purchase property in Singapore seem to have been hit hard by the 10 per cent additional buyer’s stamp duty.
Home sales to foreigners plunged 78 per cent in the first quarter of this year.
Only 293 homes were purchased by foreigners, according to an analysis by the Dennis Wee Group.
This is a sharp plunge of 78 per cent from the 1,358 homes bought by foreigners in the fourth quarter last year, The Straits Times reported.
Home purchases by Singaporeans and permanent residents fell 12 per cent and 7.5 per cent respectively.
Experts told The Straits Times that some foreigners may still see long-term potential in Singapore’s property market. They may also be attracted by rebates offered by developers to cushion the blow of the tax.
Others may be simply watching and waiting, with some renting homes instead of buying.
Industry analysts also expect the number of purchases by foreigners to remain at these subdued levels for the next one or two quarters.
Whether the market picks up again depends on prices and market conditions later this year, they said.
Uncertainty in the global economy may also be a factor, analysts said.
A Reuters report said new private home sales in Singapore eased in March from February but remained high compared with historical data, indicating continued strong demand for apartments despite market-cooling measures.
Singapore home prices fell 0.1 per cent in January-March from the preceding quarter – the first drop in nearly three years.