As recently reported by PropertyWire, buyers from mainland China are fuelling a property boom in Singapore where the price of mass market private apartments have increased to new highs in the first quarter of 2011, the latest figures show.
The average property price is now at S$1,935 per square foot in prime areas, and S$1,043 for non-prime areas, the highest since the first quarter of 2008, according to a report from real estate consultants Jones Lang LaSalle.
Chinese buyers account for the largest share for mass market units, at 63% for properties priced between S$500,000 and S$1.5 million. For properties priced above S$5 million in central and prime districts some 32% were Chinese.
Analysts believe that the surge in buyers from China is down to tightening of real estate rules in China. ‘While we do not expect a repeat of what is observed this past quarter, we can expect the number of Chinese buyers to continue at a healthy level as seen in previous quarters as the fiscal and monetary policy in China remains conducive to overseas investment by the wealthier Chinese,’ said Dr Chua Yang Liang, head of research for South-East Asia and Singapore at Jones Lang LaSalle.
Rental demand for smaller units softened while larger four bedroom units in prime districts were the only residential unit type to see an increase in rental value for this quarter.
‘The preference of the expatriate community is for larger four bedroom apartments of at least 2800 square feet.
The smaller size units are not particularly attractive as the majority of middle and upper management families relocating prefer spacious four bedroom units that come with entertainment areas,’ said Jacqueline Wong, head residential at Jones Lang LaSalle.
NOTE: We use XE.com for currency conversions