Property developers have begun reducing prices and offering discounts on a case-by-case basis in an effort to stop buyers from withdrawing from planned purchases.
Roxy-Pacific Holdings might lower asking prices for the upcoming launch of Spottiswoode 18. Following Thursday’s announcement of new measures to cool the real estate market, the project’s price list is set to be finalised ahead of Tuesday’s soft launch of the 251-unit prime property.
Market sources said more price cuts at upcoming launches are expected.
Some developers are also giving discounts on a case-by-case basis so as to attract potential buyers to exercise their option to purchase, they said.
Sources said a listed developer offered a discount of about five percent to entice a group of investors to exercise their option to buy a unit at a Cairnhill project. However, the investors still walked away and forfeited their deposit. Other developers have also offered to absorb buyers’ stamp duty.
Developers are reacting to the higher seller’s stamp duty for private homes to 16 percent, 12 percent, eight percent and four percent for properties acquired on or after January 14 and sold in the first, second, third and fourth year after acquisition, respectively.
Owners who sold private homes less than three years after acquisition previously needed to pay a seller’s stamp duty of up to three percent.
The measures weakened buying sentiment over the weekend; show flats were quieter as agents reported a decline in buyer interest, though a few projects still attracted potential customers.
“Turnout at showflats was quite mixed,” said Brandon Lee, Property Analyst at DMG & Partners.