Foreign buyers return to property market in April, after Q1 pullback

As quarantine-free travel returns, private home purchases by foreign buyers are expected to gradually gain momentum, although analysts also flagged headwinds such as economic uncertainties and currency fluctuations as factors to watch.

According to data collated by OrangeTee & Tie, non-landed private home purchases by foreign buyers nearly halved after a fresh round of property cooling measures were unveiled in December, from 277 units in Q4 2021 to 146 units in Q1 2022. As part of the measures to cool the red-hot property market, foreign buyers now have to pay a 30 per cent Additional Buyer’s Stamp Duty (ABSD), up sharply from 20 per cent previously.

OrangeTee’s senior vice-president (research & analytics), Christine Sun, said: “Some buyers may have been deterred by the higher taxes and bigger cash outlay.”