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Foreign home buying went up 20% this year

Foreign home buying went up 20% this year

In the first nine months of 2017, the number of homes purchased by foreigners increased by up to 20 percent. And UOB Kay Hian believes that there is still room to grow.

This comes this as the numbers of home purchased by foreigners only accounted for 22 percent of this year’s volume of private home sales. Which is a decrease from 30 percent in 2007, and 32 percent in 2011.

Foreign purchases consisted of only 29% of the high-end market, which is substantially lower than 41 percent registered in 2007.

The statement also said, “The return of foreign buying will benefit the mid- to high-end segment in particular, as they tend to favour the prime city centres, which sees higher demand for leasing”

The statement also noted that with the especially due to the introduction of the Additional Buyer’s Stamp Duty (ABSD), the number of home purchases from foreigners decreased by 10 percent from December 2011 and 15 percent from January 2013.

In another note by UOB Kay Hian it was mentioned that as overseas market “caught up with harsher property cooling measures to moderate housing prices and limit foreigners’ participation, we expect buying to move up to the mid-high end segment, driven by foreign demand”

Hong Kong raised its stamp duties on foreign properties buyers to 30 percent in November 2016, higher than Singapore’s 15 percent. And Taipei introduced a punitive divestment gain tax of up to 45 percent in January 2016, surpassing Singapore’s 12 percent sellers stamp duty.

Australia and Canada too have introduced new measure to increase the transaction cost for foreigners seeking to purchase property.

 

 

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