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We should be very worried

Last month, a Chinese national bought 20 units at CanningHill Piers for $87.6m. The buyer is also considering another 10 units, which will bring the total price to more than $100m.

And then in April last year, Taiwan’s Tsai family, which is behind snack food giant Want Want China Holdings, bought all 20 units of the freehold luxe development Eden in 2 Draycott Park for $293 million.

In fact, the number of private homes purchased by foreigners in May 2022 jumped by 58% as compared to the month before.

Foreigners snapping up property in Singapore may be a sign of their confidence in our property market, but unless we are property developers, bankers or investors ourselves, we should be very worried with such occurrences.

At the end of the day, land in tiny Singapore is very limited, the more foreigners snap up properties here, the less land we have for housing and therefore the higher the price. Well and good for investors, but for the majority of Singaporeans, a house is a roof over our heads and by far, our biggest financial burden.

In a study by NUS entitled “Foreign liquidity to real estate market: Ripple effect and housing price dynamics”, the authors noted that foreign liquidity shocks can greatly impact housing price growth in not only the central region, where foreigners are more active, but also the less central region. They go on to say that even though foreigners are not allowed to buy HDB flats, the ripple effect of foreign liquidity shocks can reach the public housing market…”In fact, the correlation between foreigners’ share of property purchases and the national price index was 0.7 during the study period” (1 is complete correlation and 0 is no correlation.)

Clearly, given the renewed foreign liquidity influx, the current quantum of the ABSD is woefully inadequate. The government needs to increase it substantially.

It is now common to hear of million dollar resale HDB, and BTO prices are correspondingly shooting through the roof. No doubt, foreigners snapping up property here has exacerbated the situation.

 

Foong Swee Fong

 

 

yyy
READER COMMENTS BELOW

21 Responses to “We should be very worried”

  • P Against People:

    Aiyoh, why worry about a few units. 10, 20, even 100, no big deal. Better worry about the 3 million already here. They fight with you for HDB and low range condos. They also fight with you and vote in the white ghosts.

    Get your priorities right.

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  • xoxo:

    In true spirit of INTEGRITY,i think G shud not use PRIVATE HOME PRICES to price HDB flats it sells to SINGAPOREANS.
    I would even suggest there be REGULARISATION OF SECONDARY HDB pricing.
    CAPS shud be considered n applied.
    More so is the pricing of PRIMARY HDB HOUSING SECTOR.

    Private is private.
    Public shud remain as PUBLIC.
    PROFITS SHUD NEVER BE THE PRIMARY OBJECTIVE.
    THIS IS NOW NOT THE CASE.
    BURDENING GENUINE HOME-BUYERS WITH SUCH ELEVATED PRICING FOR HDB FLATS IS CLEARLY A BAD PUBLIC POLICY,GO ASK THE SOCIOLOGISTS.,

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  • Ok joe:

    How come NTuC sell 4D.in store.

    4D cannot eat one.

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  • Ok joe:

    4D eat YOU!

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  • Ok joe:

    Isn’t it good our very own CPF

    Coming back home finally?

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  • Ok joe:

    $70 dollar chicken only

    Paper money can buy.(Hint,get from incense shop)

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  • MarBowling:

    Hopefully when SHTF(the BURSTING of EVERYTHING BUBBLE GLOBALLY ESPECIALLY IN USA AND EU), there will be SEVERE CRASH IN THE GLOBAL HOUSING MARKET, INCLUDING SINKAPORE, resulting in prices of homes RETURNING BACK TO SANITY so that our younger population are NOT SADDLED WITH HUGE AND LOONG TERM MORTGAGE LOANS OF 20-25 YEARS and are THEN ABLE TO HAVE SUFFICIENT CPF FUNDS FOR A MEANINGFUL RETIREMENT!

    TO ACHIEVE THIS IDEAL WEST COAST PLAN, PLEASE VOTE IN OPPOSITION IN THE NEXT GE IN 2024/2025 or maybe 2023!

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  • Natural:

    More money will pour in…from Oversea buyers.
    More problem for poor Singaporean…everything price will go up.
    Free market at play…Flight to safety.
    The poor will get poorer.

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  • kannan:

    Most of the condominiums in the East Coast areas are already bought by foreigners. There are already foreign enclaves in these condominiums.

    Who do you think bought them? If they become a majority owners of these condominiums, what would happen to Singaporeans and Singapore?

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  • illiterate pap voters:

    But things can improve very quickly too.

    Vote into power a New Government. New Government changes law to require all such aliens to liquidate and leave Singapore.

    Voila.

    Singapore belongs to Singaporeans once again.

    Because a good government can do such a drastic thing, we don’t buy any property in Johor where we live because if the Johor MB does such a thing, then, for sure we suffer and may have to leave immediately for Zhuhai whereas now we can still take our time to decide when to leave Johor for Zhuhai.

    Long story short. A new government is needed in pap island to remove all the current pap wrongs and to put the pap folks in jail for all their misdeeds.

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  • C’est la vie:

    ******
    Well, given poreans propensity to brag, … just about everything, from passport dominance to bestest airlines, onto least corrupt government.

    What better or even bigger bragging rights then, … the whacked principle of, mostest expensive “public housing”, yup, that’s right, … “public housing” in thee whole wide world !!!

    Perhaps, it’s time, … to rid the oxymoronic term of “public housing”, associated with hdb/hdb’s altogether.
    ***
    ******

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  • Soccerbetting2:

    Shin Min reported on 16th June 2022 that Tampines street 21 blk 201 coffeeshop sold off at about $41,680,000 .Hawker Rental + utility costs rose to over $10,000 ! Some stall tenants give up after two months .Food cost there going to be very expensive for sure ! So better don’t stay Tampines if you cannot afford to eat expensive food everyday ! When food and all other needed items became unsubstainable and it make it a joke that Lee Hsien Loong do not understand that there is no need for the position of a million dollar pay woman minister of environment and substainability position and that Lee Hsien Loong should immediately fire off and remove Grace Fu from all government position and hauled out to be charged for failure to maintain substainability food prices and all other good prices for the Nation ! What is Lee Hsien Loong waiting for ? It bring shame on Lee Hsien Loong government face that all these while,he cannot see his whole bunch of woman ministers and women MP has really nothing good ideas to contribute to Singapore but being given a luxury life increasing taxes and fines making Singaporeans suffer all the high costs !Does keep on incresing GST,carbon tax,fines,all other taxes help to maintain a low crime situation in Singapore or rather fuel more social unrest,Lee Hsien Loong pls answer why useless Grace Fu no need to be fire and be given the party cane to whip her greedy evil backside ? Plastic bag and food container now so evil wick*d to collect $0.20 per bag or food comtainer from everybody ! So dengue is climbing up ? Why ? Rubbish chute refuse disposal also secretly up from $7.70 think last December to become over $9 per month ! How greedy evil is both Grace Fu and Amy Khor Lean Suan both are ! Pui !

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  • Cancel the PAP:

    kannan:
    Most of the condominiums in the East Coast areas are already bought by foreigners. There are already foreign enclaves in these condominiums.

    Who do you think bought them? If they become a majority owners of these condominiums, what would happen to Singaporeans and Singapore?

    This is the intentional and active outcomes the PAP has wanted to achieve – TO POLARISE Singapore in order to have the population equate PAP=SG, SG=PAP notion of citizens and foreigners TO HAVE A RESILIENT society so as NOT to have the 50 years ago riots (LITTLE India riots ARE NOT RIOTs).

    Never in the lifetime of 50 years PAP is interested in Nationalism in SG. It doesn’t mean there’s nationalism means no enclaves – but it’s easier for foreigners to pluck and Go because SG is a Hotel.

    Eduardo Saverin was quoted as example by Loong the type of rich foreigners he likes bcz they create jobs – DID HE Give LOONG the middle finger? How many jobs Eduardo created for Loong?

    The only tg rich foreigners DID FOR LOONG is drumming up foreign demand for property to assist PAP to collect millions of $ of fees, easy job of PAP.

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  • James Lee:

    It has become more apparent to see more individuals from China are aggressively snapping up SG properties at prime locations.Are these individuals
    doing the bidding for certain fractions of CCP who are moving their “hard earned wealth”to pro China safe havens in the like of SG to protect themselves from western sanctions should that happen!! What do you think??

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  • What do i think ?:

    We too can also sanction and confiscate.

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  • panyusg:

    There are over 50,000 vacant, unsold, pending construction completion apartments in Spore.

    Why worry?

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  • BK:

    There is a bigger play. A world in chaos. This year will see the highest % of millionaires migration.

    In terms of percentages, Ukraine and Russia have most millionaires migrating. In absolute numbers, they are moving out of Russia, China ,India and UK.

    Places desired, UAE, Australia….including Singapore. In terms of per capital, we have have most millionaires imported.

    The question is how to maximize this opportunity for Singapore? What conditions are laid down to ensure a trickle down effect?

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  • Sad lah:

    Good for Singapore,bad for poor Singaporean.
    COL will only goes up.
    Living standard will goes down for many.
    Sad Reality.

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  • Hawker food price:

    With owner like that,stallholders going to be slap with higher rentals.
    Food price will only goes up.Hawker food price will goes up.
    The poor will suffer.
    Free Market at play…

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  • James Lee:

    It’s beyond comprehension and believe (until lately) to see wealthy individual, most of likely agents acting on behalf of different fractions within the CCP’s power structure not only snapping up prime SG properties but also renting them at never seen before prices.just hope that our government is not oblivious to these unusual occurrences in SG property market.Act before it is too late.What do you think?

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  • James Lee:

    Wealthy individuals mainly from China and Malaysia are coming in doves snapping up whatever rent seeking investments they can find in Sg including HDB shops.It’s win win
    for them- PR plus the ability to transfer their “hard earned wealth” to a safe havens like SG.Let us not be oblivious to the possibility of money laundering in disguise .Just hope the ” what’s wrong with having more billionaire’s” PAP government will look closely into all possibilities.What do you think?

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