Singapore's real estate market to lure more Chinese investors

Foreigners in Singapore enjoy 60-80% mortgage compared to Mainland's 5-7% mortgage rates, so it should not be a surprise.

According to Colliers International, as one of the major destinations for international property investment, nearly 30% of Singapore’s private residences were owned by Mainland buyers. As shown by Colliers International’s statistics, by the end of 2011, Singapore residential property inventory was 11,800 units, 76% of which was government public housing; the rest 17%, 6% and 1% was private non-landed apartments, private landed villas and executive condominium respectively.

Apartment prices varied from RMB40,000 to RMB180,000 depending on location. Areas that are most welcomed by the Mainland Chinese investors were the Central Region (District No. 14 and 15), the East Region (District No. 16 and 18), and the North-East Region (District No. 19).

Derek Lai, Director of International Properties at Colliers International, commented, “Singapore’s mortgage rates range between 1.2% and 2.0%. Foreigners can enjoy a 60% or even 80% mortgage. The average rental yield is around 5%, higher than the mortgage rates. Compared to the Mainland’s mortgage rates of 5% - 7% and rental yields of merely 2% - 3%, plus the transparent transaction information exchange, Singapore real estate market becomes highly attractive to local investors. ”

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