MND
INSTANCES of “bulk purchases” of private property are uncommon
INSTANCES of “bulk purchases” of private property are uncommon; and among all private residential property units transacted so far this year, units involved in such multiple-unit purchases accounted for about 1 per cent, Minister for National Development Desmond Lee disclosed on Monday (Sep 12).
Units involved in multiple-unit purchases of more than 2 units are even lower, at about 0.2 per cent. “Hence, bulk property purchases are unlikely to have a significant impact on the property market,” Lee said in a written reply to questions submitted for debate by Member of Parliament Yip Hong Weng.
Yip had asked whether the government would consider creating a separate and higher tier of Additional Buyer’s Stamp Duty (ABSD) for property buyers who purchase more than a certain number of units in a single development across a period of time; whether the benefits from purchasing property in bulk, such as bulk-purchase discounts, will negate or cushion the impact of previous ABSD increases; and under what circumstances would the Ministry consider introducing curbs on bulk property purchases.
Lee noted that the ABSD was “structured to moderate investment demand in residential property and is therefore differentiated based on the residency status of the buyer and the overall number of residential properties owned”. “ABSD discourages the purchase of multiple units, as higher rates generally apply to purchases by those who already own at least 1 residential property. Higher rates also apply to buyers who are not Singapore citizens,” he added.
ABSD rates were raised across all buyer profiles in December 2021, except for Singapore citizens and permanent residents purchasing their first residential property.
Multiple purchases of property have surfaced in recent months. In June, reports said a Chinese national bought 20 units at CanningHill Piers, a condominium along the Singapore River, for more than S$85 million.
Real estate agents have also noted anecdotally that there are instances of multiple purchases being made at new project launches, where members of the same family buy more than 1 unit. Developers typically give priority to potential buyers who have indicated at launch previews that they are keen to buy more than 1 unit.
While “bulk buys” are not uncommon, agents say it is not prevalent, accounting for less than 5 per cent of units sold at launch.
“It could be parents and children who want to stay together, so they select units next to each other. We can also have siblings coming together to buy,” said Huttons Asia senior director of research Lee Sze Teck.
On whether bulk buyers enjoyed discounts, Wong Siew Ying, head of research and content, PropNex Realty said: “There is no certainty that bulk purchasers will get a better price. It depends on the project and prevailing buying interest.”
On Monday, the minister was also asked by Non-Constituency Member of Parliament Leong Mun Wai whether the inflow of foreign money into the local property market has increased in the last 2 years; if so, whether such inflow has pushed up private and public property prices in the last 2 years; and whether the government intends to introduce new policies to manage the impact of the flow of foreign money into the local property market.
Lee pointed out that foreigners are not allowed to buy HDB flats. “They also account for a very small proportion of private housing transactions. In the past 2 years, they accounted for around 3 per cent of all private housing transactions. This is lower than the pre-pandemic level of around 5 per cent between 2017 and 2019.”
He added: “While the foreigner share of private housing transactions remains low, the government will continue monitoring foreign money inflows on our property market closely and adjust our policies as necessary, to promote a stable and sustainable property market.”