According to government figures, the number of foreigners owning private property in Singapore has increased by 16% during the first six months of this year, compared to an increase of just 12% for the whole of last year.
Some people are concerned that locals may be out priced by foreigners from the housing market, but the National Development Minister Khaw Boon Wan has pointed out that locals still accounted for 80% of private home purchases this year.
The Singaporean government recently imposed cooling measures to try to prevent the market from overheating, and although these are already having an effect the full impact won't be felt for a while.
The rate of price increases in residential property is already slowing as prices have increased by 6% so far this year compared to the 18% recorded during last year.
The Singaporean government also intends to continue supplying sufficient land so housing developments can be built for those Singaporeans who wish to own their own homes. Last year the government released land for 10,000 units while this year it has released land for more than 14,500 units.
At the moment there are about 34,000 unsold private homes which is equivalent to 2 years of demand, but the government intends to keep up with their land sales program until the market stabilises, especially as it will be some time before the new supply is available. The government has also pledged to build more affordable housing and expects the country's supply of rental flats to reach 47,000 with an additional 3,000 units being added next year.
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