The newly implemented additional buyer’s stamp duty (ABSD) appears to be mainly aimed at foreign buyers, a UOB Kay Hian report noted.
“The move will act as a strong deterrent for foreign buyers as their transaction costs would increase by 10 percent overnight,” said Vikrant Pandey, an analyst at UOB KayHian.
The luxury market is the most affected, as foreign buyers account for up to 50 percent of all purchases in this segment.
Scotts Square by Wheelock Properties is among the prime condominiums that have recorded an increase in buying interest from foreigners last month, after obtaining its Temporary Occupation Permit (TOP) in September.
The freehold development features 338 high-end apartments in two 35- and 43-storey towers situated atop an 80,000 sq ft retail podium. Apartment sizes range from 624 sq ft to 1,249 sq ft, with one-, two- and three bedroom units.
The latest deal there involved a 1,249 sq ft, three-bedroom unit located at the 13th floor, which was sold for S$4.7 million (around S$3,764 psf). Two other units on the 11th floor, both one-bedroom apartments, were also sold for S$2.4 million each (or approximately S$3,710 psf).
To date, more than 250 apartment units have been sold at the development, at an average price of around S$3,710 psf.
“The Indonesian buyers, in particular, like it because of the location where there are many luxury boutiques but the interest among local investors are increasing as well,” said Lily Gozali, a Senior Realty Adviser of KF Property Network. “It’s too early to tell what the new measures will have on foreign buying interest.”
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