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SINGAPORE: Two days after a new round of property curbs took effect on April 27, Blossoms by the Park in Buona Vista surprised many with a robust 75% take-up, prompting some analysts to question if the latest measures are sufficient to cool prices and demand.
Within two days of its launch, the city fringe condominium sold 205 of its 275 units despite the announcement late on April 26 of a fourth round of hikes in additional buyer’s stamp duty (ABSD) rates since 2011.
About 96% of buyers were Singaporeans and permanent residents (PRs), though some analysts pointed out that the strong take-up of smaller one-bedroom and two-bedroom units – at new benchmark prices for the area – suggests that many buyers may be investors rather than owner-occupiers.
Singapore citizens and PRs buying second and subsequent homes will pay ABSD of 20% and 30% respectively, up from 17% and 25%.
Despite the new measures, Blossoms by the Park was well received, due in part to pent-up demand and limited new supply in the growing one-north business hub.
Not only is it a boon to those who work in the area, the investment appeal of one-north homes is another big draw.
Huttons Asia senior director of research Lee Sze Teck pointed out that rents in one-north are estimated to be 20% higher than in nearby non-landed projects such as Dover Parkview and Heritage View, and are likely to outperform, given the limited supply.
The 99-year leasehold project also set new benchmark prices for the Buona Vista area. The average transacted price of one-north Eden – the previous launch in one-north two years ago – was US$2,012 (RM8,959) per sq ft, about 17% cheaper than the US$2,423 per sq ft (RM10,789) average price of Blossoms by the Park, property portal Mogul.sg chief research officer Nicholas Mak said.
The sales also suggest that foreign buyers, particularly Chinese nationals, have not entirely fallen out of love with Singapore private property despite being hit with a new ABSD rate of 60%, up from 30% previously.
In all, eight foreign buyers purchased units at Blossoms by the Park, four of whom were Chinese nationals and the rest American citizens.
Under a free trade agreement between the United States and Singapore, US nationals are accorded the same stamp duty treatment as Singapore citizens. — The Straits Times/ANN
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