Some units at major projects released in November and early December 2011 are being returned to their developers, possibly indicating a reflex reaction to the implementation of the additional buyer’s stamp duty (ABSD), according to market watchers.
A report by the Business Times revealed that those who chose not to exercise their option to buy will forfeit a quarter of the five percent option fee, which is equivalent to 1.25 percent of the unit’s purchase price. This amount, however, is a small price to pay for those who anticipate a sharp slide in private home prices.
Some units were returned to developers for various reasons even during routine times.
Released on 23 November 2011, CapitaLand’s Bedok Residences saw around four percent, or 20 of the 495 granted options not exercised by the deadlines.
In Pasir Ris, where The Palette condo was released by City Developments Ltd (CDL), Hong Realty and Hong Leong Holdings in the first half of November 2011, around 17 of the 436 options issued (also about four percent) were not exercised.
Meanwhile, about 12 percent (15 out of 130 units) issued with options at the Archipelago condo near Bedok Reservoir Park were returned to its developers, Singapore Land and UOL Group.
The condos at the 577-unit five-storey, 99-year leasehold project were each being offered at about S$1,000 psf. “All 15 or so units returned are apartments; none of the strata semi-detached homes sold in the project have been returned,” said UOL.
“While Bedok Residences and The Palette were released in November, Archipelago’s preview began just five days prior to the additional buyer’s stamp duty being announced on the evening of 7 December, and hence (buyers) had a longer window to exercise options post-December 7,” noted a property agent.
Related Stories:
Real estate investments hit S$28.6b in 2011
S’pore property market braces for cold year
Private property price hike eases further