The implementation of the Additional Buyer’s Stamp Duty (ABSD) to curb Singapore’s property market significantly affected home sales in December, as it dipped 63 percent month-on-month to 632 units sold, from 1,702 in November.
“The initial impact of the ABSD is felt equally across all submarkets in the demand for new residential units (prime and mass) on a month on month comparison,” said Jones Lang LaSalle (JLL).
Chia Siew Chuin, Director of Research & Advisory at Colliers International, said the 632 units sold is “also the lowest level seen since December 2009 (438 units sold) during the nascent recovery of the private residential market.”
Tejaswi Chunduri, PropertyGuru’s real estate analyst, said one of the immediate impacts of the ABSD, as expected, was the decline in transactions, as “buyers adopt a ‘wait and see’ approach before they venture into the market again.”
Both the Outside Central Region (OCR) and Rest of Central Region (RCR) recorded an average drop of 63 percent month-on-month, while the Core Central Region (CCR) saw a smaller decline of 57 percent month-on-month.
JLL said new launches remain limited in the CCR, with all of these units becoming available at previously launched projects rather than any new developments.
Meanwhile, three new projects were launched in the OCR, including the Archipelago in Bedok, The Nautical at Sembawang Road and Residences 88, while only one property launch was recorded in the RCR in December, that being Prime Residence.
Nonetheless, Chia said developers still launched 17,859 new units in 2011, driven by the low interest rate environment, strong latent demand for mass-market homes and ample liquidity.
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