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

The gradual resurgence of Chinese buyers in the Singapore property market may well be a sign of a more tigerish Chinese economy in the coming year. Despite economic uncertainties and the additional buyer’s stamp duty (ABSD) of 30%, Chinese buyers remain interested in Singapore property. With the easing of quarantine rules from Jan. 8 and the upcoming Lunar New Year period, Chinese buyers are expected to gradually become more active again in the Singapore property market.Still, due to the relatively high cost of entry, foreign buyers’ overall buying demand is likely to be capped. The upcoming months will bring further insights into the state of the Singapore property market, with Chinese buyers likely playing a more significant role in 2021.As restrictions on international travel have been removed in China, the Singapore property market has seen renewed interest from Chinese-based property investors. Hotel and travel agencies have reported an increase in inquiries from China-based travellers, as they look to enjoy the Lunar New Year in countries like Singapore. Huttons Asia believes the economic environment is still fairly unfavourable, and with the prohibitive 30% additional buyer’s stamp duty, overall foreign buying demand will likely be kept at bay in 2021.Transaction data from Huttons shows Chinese buyers purchased 1,637 residential properties in 2011. However, with the introduction of property cooling measures in December 2011, that number decreased to 618 units in 2012. Despite this, Singapore remains attractive for foreign buyers looking for a safe haven to invest, and some deep-pocketed Chinese buyers have invested heavily in prime Singapore residential properties.The top three projects favoured by foreign buyers — Canninghill Piers, Riviere at Jiak Kim Street, and The Avenir at River Valley Close — each sold more than 40 units in 2022. It is clear that the uncertainty surrounding market conditions has not deterred Chinese buyers, and with the upcoming Lunar New Year period, many are likely to become more active in the Singapore property market. Hopefully, the months to come will bring further clarity on the matter.Chinese buyers remain interested in the Singapore property market, despite the current economic uncertainties and the additional buyer’s stamp duty (ABSD) of 30%. The Lunar New Year period could well bring a gradual resurgence of their Champions Way Condo activity in the market, as hotels and travel agencies report a surge in enquiries from China-based travellers. While foreign buying demand may be capped by these restrictions, the enthusiasm of Chinese buyers look set to remain undimmed. Chinese buyers are likely to play a more significant role in 2021 in the Singapore property market, with more deep-pocketed investors—looking for a safe haven to invest—expected to come to the fore.