New Home Sales Transactions at Record High Despite SIngapore Government Cooling Measures

    SINGAPORE, April 24, 2013 /24-7PressRelease/ -- Singapore new home sales at record high of 2,793 units, overtaking the previous bench of 2,772 units set in July 2009. 1814 units were from suburban while 822 units were from city or city fringe. This is despite the cooling measures implemented in January 2013.

Some of the top-selling projects are Dnest, Sennett Residence, Urban Vista, Bartley Ridge and Hillion Residences as property developers gave more incentives and discounts to assist buyers offset their Additional Buyer Stamp Duty (ABSD).

On the other hand, February 2013 new home sales only transacted at 712 units. This could probably be due to the after cooling effect set by Singapore Government to curb the property market to ensure a sustainable growth in the long run.

Other possible reasons that adds on to the slow sales in February could be due the holiday period where most people will be travelling. Developers too are holding back the launches due to the cooling measure and the holiday season.

With the 7th cooling measure in place, Singaporean has to pay an "Additional Buyer Stamp Duty (ABSD)" of 7% on their 2nd property and 10% on their 3rd and more property. Permanent residents (PR) have to pay 5% on their first property and 10% on their 2nd and 3rd properties. Foreigners have to pay 15% on their property purchase, whether 1st, 2nd or 3rd property.

Seller Stamp Duty (SSD) has previously only been imposed on residential property. After the cooling measure, it will also be applied to industrial property sold within 3 years from purchase. 15% on the first year, 10% on the second year, 5% on the third year.

The strong pick up rates from February to March probably prove that the underlying demand remains strong and those developments that are priced competitively with good location will continue to score well.

Some of the upcoming property launches from May 2013 include The Flow @ East Coast, HallMark Residences, KAP & KAP Residences, The Midtown & Midtown Residences, Ferra @ Leonie Hill, Cluny Park Residence, Whitehaven @ pasir panjang and The Siena @ Farrer.

The Flow @ East Coast will be replacing the previous GRTH building at 66 East Coast Road. This new development has 56 units of commercial clinic, shops, restaurant and food court. Oxley Holdings bought this development for 76.1 million or $1,298 psf ppr.

Whitehaven @ Pasir Panjang will be replacing the previous Westvale Condominium at 334 pasir panjang. Whitehaven has 120 residential of 1 to 4 bedrooms, lofts and also penthouses. Roxy Pacific bought the Westvale condominium for 77.5 million or about $883 per square foot per plot ratio (psf ppr).

Hallmark Residences will be replacing the previous Nob Hill Condominium at 21 Ewe Boon road. MCL Land bought the Nob Hill Condominium and together with 2 adjoining bungalows for 95 million or 1,100 per square foot. Hallmark Residences has 75 units of 2 bedrooms to 4 bedrooms and penthouse.

As we going into the 3rd quarter of 2013, Singapore private property market is expected to stay subdued with sales volume expected to remain healthy as developers continue to offer competitive prices to assist potential buyers to offset the hefty Additional Buyer Stamp Duty.

Do visit New Launch Singapore for latest project updates.

New Launch Singapore specializes on property launches in Singapore that include residential, commercial and industrial. Please visit us at http://www.newlaunchxpert.com.sg or call us at +65 6100 0877 for immediate attention.

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