Foreign Buyers Go Back to Singapore’s Property Market
Singapore has always been at the fore when ranking the best for property investment. The reasons are stemmed from the strong laws that favour buying properties in Singapore. Not only that, but the taxes that are attached to it are very affordable. However, the effects of the covid pandemic that ravaged the entire world hindered foreigners from travelling to purchase properties since 2020. Several other internal factors, such as companies’ policies, also affected and brewed uncertainty in the growth of Singapore, resulting in a reduced interest in property purchases.
However, the prompt actions against the covid pandemic have given Singapore a great turn. With the government’s move to ensure 100% vaccination to its teeming population, we can expect to see a rise in their overseas property buyers. This is mostly because there are now stable facilities for vaccinations. Although its borders are still under lock, the market is finding its way back to its former glory.
Things Singapore did to make up for the loss during the Covid Pandemic
The country has announced free quarantine for travellers from Germany and Brunei, and this is to ensure the safety of these non-residents. Also, it has opened its doors to countries like China by lifting travel bands set on them to make transactions flexible. Besides that, countries with lower cases of covid can now travel into the country. Measures of protection such as face masks and social distancing are also put in place under strict monitoring.
With this, Singapore has started to make waves from the start of the year, and it has increased its sales of property compared to that of 2020. Based on the sales estimate, Singapore has earned substantially between January and August, much more than anyone would have expected. Buyers have been showing up from China, the US, Australia, France, and the UK, and they have invested hugely in buying.
The negative effect of more foreign presence in the country
As good as this sounds, it is funny that some buyers are still struggling with life in Singapore after the covid pandemic. Apart from the visa ban, many foreigners are not comfortable with the hatred brewing towards foreign work permit holders. Although, this move has helped to stabilize the jobs of local workers. One must understand that coupled with the pandemic, Asians in Singapore have had to deal with a tough living standard, minimum wages and economic favouritism.
Purchasing Properties In Singapore
In Singapore, people interested in buying have many challenges on the types of homes they can purchase. This includes non-residents who can buy only apartments and condos, among others. In contrast, permanent residents have a relaxed law on what they can buy and generally have greater opportunities on buying landed properties. Although the law can be slightly unfavourable, investors who understand the rudiments of the law can find ways to pass it.
There are many other similar laws in place for foreign property buyers. It is generally advised that you take the initiative to learn these laws and restrictions as an investor. For one, foreign buyers must note that taxes are added in the form of additional stamp duty for each landed property bought. This comes in payment of up to 20%, although there are some exceptions to the rules in some cases.
The country experienced a rise in the number of sales of non-landed homes to foreigners in the last few years. But in the second quarter of the year, they have by far recorded the highest rise in the sale of non-landed homes.