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OK, let me share my thoughts on this. China properties rise > speculators/investors rush in to buy > China Govt clamps down > China properties cool and prices fall > Speculators/investors move to Singapore > ??? Tongue

The Straits Times
Nov 25, 2011
Chinese home buyers' share rises

By Yasmine Yahya

THE share of mainland Chinese buyers of private homes among all non-Singaporean buyers hit a record high in the third quarter, as property-cooling measures in China drove home hunters here.

A report by DTZ Research said the Chinese bought 30.6 per cent of the private homes sold to non-Singaporeans between July and September, up from 26.1 per cent in the second quarter.

Singaporeans still made up the majority of buyers, with 64.8 per cent of all private home sales in the third quarter made to locals. But this is a drop from 67.9 per cent in the previous quarter.

Private home sales to all buyers in the third quarter slumped 24.5 per cent from the second quarter to 6,879 units, and were also lower than the average of 8,003 and 9,167 units per quarter in 2009 and 2010, respectively.

However, buying among mainland Chinese dipped to 682 homes in the third quarter, only a shade lower than the 707 in the previous three months.

'Mainland Chinese buyers are increasingly looking to buy properties overseas, including Singapore, as a result of property cooling measures in China which have led to residential property prices falling in some cities,' DTZ said in its report.

'The predominantly Chinese population, good infrastructure and education system, and the safe and clean environment make Singapore property an attractive investment option for mainland Chinese investors to park their money or buy a home for their children studying here.'

The report cited Beijing's cooling measures as one factor driving buyers here. In recent months, China has taken steps such as tightening home lending.

Dr Chua Yang Liang, head of research at Jones Lang LaSalle South-east Asia, said one reason for the rising proportion of Chinese buyers is that some of the nationalities that have traditionally invested here are now more interested in their own home markets.

'Indonesians, for example, are probably looking at their own home now as their own economy is growing rapidly,' he said.

Indonesians formed 17.5 per cent of foreign buyers in the third quarter, snapping up 389 units. In the second quarter, they bought 441 units, or 16.3 per cent of foreign buyers.

Other nationalities prominent among foreign buyers included Malaysians, with 18.9 per cent, and Indians, 11.1 per cent. Together, buyers from China, Malaysia, Indonesia and India made up 78 per cent of all foreign buyers.

For the first nine months, mainland Chinese bought 1,933 private homes, 8.4 per cent more than in all of last year. Most of the units cost $1 million each or less. They bought 835 units in this bracket, 503 units priced at $1 million to $1.5 million, and 62 units costing over $5 million.

The east was especially popular with this group of house hunters. Of the units bought by the Chinese from January to September, 419 - or 21.7 per cent - were in Districts 15 and 16. District 15 includes Katong, Joo Chiat and Amber Road while District 16 takes in Bedok and Upper East Coast.

DTZ head of South-east Asia research Chua Chor Hoon said total private home sales could fall. 'Private home sales will continue to be supported by demand particularly from upgraders as long as the pricing is reasonable,' she said. 'However, if the scenario of a disorderly euro zone default or a China hard landing materialises, this will significantly dampen purchase demand and price growth in 2012.'
Have anybody ever asked themselves or wondered with the currency controls in place based on limit of 40,000 yuan per day allowance to take out of the country how in the world does PRC nationals come here buy expensive properties paying for them in COLD HARD CASH Big Grin

The answer is a lot of these "well heeled buyers" resort to illegal money smuggling, carrying suitcases full of cash and paying off border customs officials on PRC side to look the other way that's how. Wink

All these transactions are considered "illegal" in the eyes of the PRC government that sooner or later will be crackdown.
they carry to singapore buy the their luggage is rmb or sgd cash?
The money in the suitcase should be in rmb but houses paid for are all in sgd.

Not sure if ICA will ask any questions at sg borders but I think almost any country in the world will welcome money coming into their borders. Obviously also there could also be some middlemen involved changing or buying rmb for sgd I would guess probably at more favorable terms to the middlemen. Big Grin