Singapore developers feel the heat as China’s property woes continue

But analysts say Beijing’s huge market and recent policy support mean most investors are unlikely to pull back entirely, instead becoming far more selective about where they invest.

Recent earnings from several Singapore developers show the pressure building across their China portfolios, even as investors watch for signs the country’s prolonged property downturn may be nearing a turning point.

Developers from the city state have been investing in China’s property market since the world’s second-largest economy opened its doors to global capital in the 1970s, and have since become one of the biggest groups of asset buyers.

Property investments from Singaporean investors reached 34.65 billion yuan in 2018, making the city state the largest asset buyer in China’s property market, according to data by real estate agency Cushman & Wakefield.

But China’s property sector has been in a slump since the central government imposed lending caps – known as the “three red lines” policy – in 2020 to curb developers’ leverage and rein in a housing boom.

Falling sales and prices have dragged down many Chinese developers. China Evergrande Group, once the country’s largest, was ordered to liquidate in 2024, while China Vanke – formerly hailed as one of the more financially resilient names – has found itself under crushing debt.