More buyers spend above $1 million on homes
DTZ report shows mainland Chinese buyers closing in on Indonesians
By UMA SHANKARI
MORE private home buyers are paying more than $1 million apiece for a property as prices climbed in the past year, a new report from DTZ shows.
The consultancy's Q2 2010 residential report also said that the share of transactions involving purchasers with HDB addresses has stabilised at around the 34-36 per cent mark in the last three quarters - despite the increase in prices - as these buyers are now supported by the rising HDB resale prices.
And among non-Singaporeans, buyers from mainland China are closing in on Indonesians as the second largest group of non-Singaporean purchasers.
Buyers from Malaysia still made up the largest group of foreign buyers in Q2.
DTZ's report is based on caveats lodged on private home transactions in the primary and secondary markets.
As of August 17, 9,437 caveats were available for analysis.
Buying sentiment cooled in May and June on the back of the European debt woes, local stock market jitters and an increased supply of land from the government land sales programme.
But despite this, the proportion of higher-priced homes that changed hands in the quarter continued to grow in Q2 2010.
The share of purchases for units that are at least $3 million edged higher to 10 per cent of all transactions recorded in the quarter, slightly higher than the 9 per cent in Q1 2010.
Most of the transactions were in the prime districts of 9, 10 and 11.
More buyers also paid more than $1 million each for their new homes.
DTZ's analysis shows that the proportion of purchasers with HDB addresses who bought units of above $1 million stood at 43 per cent in Q2, compared to 36 per cent in Q1 2010.
Similarly, purchasers with private addresses who made purchases of above $1 million climbed to 73 per cent from 69 per cent.
'This shift is due to prices having risen almost 20 per cent since Q3 2009, according to the residential property price index compiled by the Urban Redevelopment Authority,' noted DTZ.
The report also said that 33 per cent of all private units transacted in the quarter were bought by purchasers with HDB addresses - way higher than the 22 per cent seen in 2007 when the property boom was led by the higher-end segment.
In contrast, the current buying wave is mainly in the lower end market segment which is buoyed by rising public housing resale prices - which allows for more HDB upgrader participation.
DTZ's analysis also found that buyers from Malaysia, Indonesia, China and India made up 69 per cent of total transactions by foreigners and Singapore Permanent Resident (SPRs) in Q2 2010.
Malaysians accounted for 22 per cent of total transactions by non-Singaporeans in the quarter, unchanged from Q1 2010.
Historically, the Malaysians and Indonesians have been the two largest non- Singaporean purchaser groups.
But mainland Chinese buyers are closing in on the Indonesians.
Mainland Chinese buyers made up 17 per cent of non-Singaporean purchasers in Q2, slightly lower than the 18 per cent in Q1.
The Indonesians constituted 18 per cent of all non-Singaporean purchasers both in Q1 and Q2 2010.
The Interlace saw the largest number of foreign purchasers in Q2 2010, followed by The Laurels, Centennia Suites, Goodwood Residence and City Square Residences.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
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