Hong Kong investors take advantage of a correction in Singapore's property prices

By Zoe Low zoe.low@scmp.com / South China Morning Post | May 16, 2019 12:25 PM SGT
Hong Kong investors are renewing their interest in Singapore, betting property prices will recover in the second half of this year, according to property consultants.
Just 29 homes were sold to Hong Kong buyers in 2018, some 42 per cent fewer than the previous year, after the Singaporean government introduced cooling measures to curb foreign buying demand.
The Additional Buyer's Stamp Duty for foreign buyers was increased to 20 per cent from 15 per cent in July last year, while the loan-to-value limit was reduced by five percentage points for all housing loans. Individual borrowers' loan limit on first housing loans was reduced to 75 per cent from 80 per cent, dropping to 45 per cent from 50 per cent for a second loan.
"We expect by the end of the second quarter of this year, property prices in Singapore will increase by 5 per cent, mainly due to an increase in prices of new developments and collective "en bloc" property sales," said Terence Law, senior principal project director at Centaline Property Agency.
Market observers say their outlook for the Singaporean property market is largely positive. Photo: Shutterstock
Singapore's property prices have continued to fall since the last quarter of 2018, declining 0.7 per cent between the final quarter of 2018 and the first quarter of 2019, but Colliers International estimates home prices will stabilise in the second half of 2019 and grow 1 per cent overall.
Hong Kong buyers are likely to flock to the Singapore market while prices were still low, Law said.
Meanwhile, Colliers International estimates Singapore home prices will stabilise by the second half of this year as it expects the market to have digested the cooling measures.
Flats in The Hyde developed by Aurum Land on Balmoral Road in Bukit Timah, Singapore, are being marketed to buyers from Hong Kong. Photo: Handout
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