First condominium launch after new cooling measures sees 70% sales

SINGAPORE: More than 70 per cent of Blossoms By The Park condominium was sold on Saturday (Apr 29), the first launch after new cooling measures were announced earlier this week.

Sales on the 275-unit development in one-north started on Saturday. As of 6pm, more than 70 per cent of the units were sold, at an average price of S$2,423 (US$1,814) per square foot.

About 96 per cent of the buyers were Singaporeans and permanent residents, with foreigners accounting for the remaining 4 per cent on the first day of sales, said developer EL Development.

On Thursday, additional buyer’s stamp duty (ABSD) was increased for some buyers. Foreigners buying any residential property now have to pay an ABSD of 60 per cent – up from 30 per cent previously.

Singaporeans buying their second residential property will pay an ABSD rate of 20 per cent, up from 17 per cent, while those buying their third and subsequent residential property will have to pay an increased rate of 30 per cent, up from 25 per cent. 

The rate of 30 per cent also applies to permanent residents buying their second residential property. PRs buying their third and subsequent residential property will pay an ABSD of 35 per cent, up from 30 per cent.

This is the third round of cooling measures since December 2021. National Development Minister Desmond Lee said the ABSD increase is a "pre-emptive measure" to dampen local and foreign investment demand. 

Huttons Asia’s CEO Mark Yip said Blossoms By The Park was the best-selling Rest of Central Region (RCR) project in 2023 so far, based on percentage.

“The excellent sales were down to a few reasons. The first being the count of properties owned by buyers. Huttons estimated more than 90 per cent were first-time buyers, hence (they were) unaffected by the cooling measures,” said Mr Yip.

He also cited the investment appeal of homes in the one-north area.

“The cooling measures were targeted at a small group of buyers and first-time buyers were not affected. The excellent sales will give confidence to buyers who may be sitting on the fence to commit if their finances permit,” he added.

The 99-year leasehold project has 1-bedroom to 4-bedroom unit types in a 27-storey block, and the units ranged from about S$1.3 million to about S$3.3 million.

Mr Lim Yew Soon, managing director of EL Development, said they were “heartened” by the response and that the large majority of buyers were Singaporeans.

CEO of ERA Realty Network Marcus Chu said that typically, more than 80 per cent of home buyers in the RCR are Singaporeans and they may not be “affected or too affected” by the increase in ABSD rates.

Urban Redevelopment Authority statistics released on Friday showed that the prices of private homes in Singapore has increased by 3.3 per cent, up from the 0.4 rise in the fourth quarter of last year.

City Developments Limited told CNA on Friday that it has postponed the preview of its luxury freehold development Newport Residences following the latest cooling measures, although other private launches are set to go ahead.