Lower stamp duties
in Singapore has made the city-state more attractive for Chinese investors.
Singapore may benefit from Hong Kong’s recent increase in
stamp duty for overseas property buyers, reported Bloomberg.
According to Cushman & Wakefield, Singapore’s three-year
slump in house prices could end this year as foreign investors in Hong Kong are
expected to divert their attention to Singapore instead.
“The fallout from the stamp duty could be beneficial for
Singapore,” said Sigrid Zialcita, Managing Director for Asia Pacific Research
at Cushman & Wakefield.
“Singapore is always seen as a place where you can preserve
capital and we are expecting interest from foreign nationals to come back.”
Last November, Hong Kong raised its stamp duty for overseas
buyers to 30 percent, making Singapore’s 18 percent rate more favourable,
especially to mainland Chinese who are looking for overseas investments to
protect them from a weakening yuan.
With this, analysts expect property values in Singapore to
dip by just 1.5 percent this year, while secondary home prices in Hong Kong are
forecast to drop by eight percent.
Desmond Sim, CBRE’s Research Head for Singapore and Southeast
Asia, expects prices to stay flat or dip by up to two percent. Savills, on the
other hand, has forecast a one percent increase in average home prices.
The city-state has seen housing prices fall by 11 percent
since 2013, when the government rolled out its strictest property cooling
measures.
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