Number of private homes bought by foreigners in S'pore continues to shrink

The decline is largely attributed to the 60% ABSD imposed on non-residents: Experts

- Joyce Lim

Singapore's property market has seen a significant drop in foreign buyers over the past year, even as global wealth continues to accumulate in the city-state.

From May 2023 to April 2024, only 321 condominium units were sold to foreigners, down from 1,054 units in the previous 12 months, according to Urban Redevelopment Authority (URA) data. This was an average of about 26 units per month. From May to August 2024, 88 units were sold, averaging only 22 a month.

Property experts attributed the decline largely to the 60 per cent additional buyer's stamp duty (ABSD) imposed on non-residents, which has significantly curbed foreign investment, particularly in high-end residential properties.

Despite the regulatory constraints, Singapore continues to attract wealthy individuals.

In 2023, 3,400 high-net-worth individuals relocated to the citystate, according to investment migration consultant Henley & Partners' 2024 World's Wealthiest Cities Report.

This brought Singapore's total number of resident millionaires to 244,800, along with 336 centi-millionaires individuals whose wealth is at least US$100 million (S$130 million) - and 30 billionaires.

The number of single-family of fices, which manage the investments and financial affairs of a wealthy family, in Singapore surged from 400 in 2020 to 1,400 by the end of 2023.

While China remains Singapore's largest source of new wealth inflows, the latter holds about 25 per cent of all Indian cross-border wealth, making it the top centre in the region for Indian wealth, according to management consultancy Boston Consulting Group's Global Wealth Report 2024.