SINGAPORE – Two days after new property curbs kicked in to raise additional stamp duties for some home buyers, a development in Buona Vista sold more than 200 of its 275 units at its launch on Saturday.
Among the new launches in 2023, Blossoms by the Park in Slim Barracks Rise achieved the highest take-up rate of about 75 per cent, at an average price of $2,423 per square foot (psf).
Several buyers told The Straits Times they were not affected by the new cooling measures, which do not apply to Singaporeans buying their first home.
Developer EL Development on Saturday said all one- and two-bedroom units, except for the two-bedroom penthouses, were fully sold.
It added that 96 per cent of the buyers were Singaporean and Singapore permanent residents (PRs), with foreign buyers making up only 4 per cent.
Ms Tracy Ong, associate group director of Huttons Asia, said the frenzy for bookings began almost from the moment the development was launched.
Huttons Asia is one of the marketing agents for the development.
“The smaller units were snapped up really fast. Almost every few minutes, I would hear a ping alert in our booking system, alerting us that a unit has been taken up,” added Ms Ong.
“My client’s queue number was 674 and he wasn’t too hopeful of getting a unit. By lunchtime, two-bedders were almost sold out and the three- and four-bedders were also being snapped up really fast. But there were also a lot of buyers who decided to drop out of the queue. Maybe the units that they wanted had already been sold. Thankfully, my client managed to secure a three-bedder.”
Ms Serene Tan, 42, a housewife, was among the first 50 buyers to pick her unit, a two-bedroom apartment with a study for $1.6 million.
Ms Tan said she and her husband moved to a rental apartment, paying $3,800 a month, after selling their Housing Board flat in Clementi earlier in 2023. They bought the condo unit as an investment.
“If the price is right, we may sell it a few years later,” she added.
“We are aware of the speculation that prices might drop following the stamp duty announcement. However, we have confidence in the project, which is why we are going ahead with the purchase.”
Industry experts said they expected the strong sales despite the latest hikes on the additional buyer’s stamp duty (ABSD) for Singapore citizens and permanent residents buying their second and subsequent properties.
While foreigners will bear the brunt of the ABSD increases if they purchase any residential property here, most buyers of Blossoms by the Park are Singaporean, they noted.
Property portal Mogul.sg chief research officer Nicholas Mak said foreigners made up fewer than 5 per cent of condo buyers in District 5 between January 2022 and now.
“Foreign buyers are not the main demand driver of private residential property any more, especially outside of the central region,” said Mr Mak.
Earlier in April, Tembusu Grand in Katong sold 53 per cent of its 638 units, or 340, during its launch weekend at an average price of $2,465 psf.
Terra Hill in Pasir Panjang sold 102 units, or 38 per cent, of its 270 units at an average price of $2,650 psf in February.
The strong sales performance at Blossoms by the Park affirms the view of a resilient market, underpinned by a healthy and stable demand for private housing among local buyers, said PropNex chief executive Ismail Gafoor.
He added: “From our observations, many buyers at new launches do not pay ABSD as they are purchasing their first residential property, and hence are not affected by the new measures.”
He said the PropNex sales team sold more than 100 units of Blossoms by the Park and most of the buyers were Singaporean and Singapore PR, with only three being foreigners.
Mr Marcus Chu, chief executive of ERA Realty Network, said the development’s proximity to the one-north research and development hub and its pricing were a draw for investors.
Meanwhile, hundreds of interested viewers turned up on Saturday at the show flat for The Continuum in Thiam Siew Avenue in the east. The project by Hoi Hup and Sunway is expected to be launched in May.
Some potential buyers told ST that they were not affected by the ABSD hike as it would be their first residential property purchase.
Ms Rebecca Lim, a resident of Sengkang, is happy with the Government’s intervention, which she feels would help to deter people buying properties for investment, leaving first-home buyers with more choice. Ms Lim is planning to sell her HDB flat and upgrade to a condominium.
Since the ABSD hike was announced, some property agents have had calls from foreign clients asking to cancel viewings that had been arranged for this weekend.
Mr Stuart Chng, managing partner of Navis, a network of 1,300 agents under Huttons Asia, said some foreign clients have now opted to rent, instead of buying a property.
City Developments, which had originally slated a preview of luxury development Newport Residences in Anson Road in Tanjong Pagar, decided to reschedule the preview this weekend.
