36 units of high-end condos and private apartments, with a price tag of at least S$10 million, have been sold at the close of 2016, reports The Business Times. 21 and 24 units were sold in 2015 and 2014, respectively. 16 transactions have been reported for the first four months of 2017.
Alan Cheong, Head of Research for Savills Singapore credits attractive pricing. This is in addition to aggressive marketing efforts by developers in disposing remaining units within the two-year period allowed once a T.O.P. or Temporary Occupation Permit is acquired. Under T.O.P. rules and regulations, penalty is reduced the more units are sold.
Another factor that facilitated the increase in unit sales is the QC or the Residential Property Act’s Qualifying Certificate. The QC requires that all developers with shareholders and directors, who are non-Singaporean, sell their units before the deadline. Failure to do so would mean penalties to extend the deadline. Thus, an additional 8%, 16% and 24% of the land price needs to be paid to extend the deadline to the 1st, 2nd, and subsequent years, respectively. This fine is pro-rated and is based on the percentage of the remaining units.
The Pollen & Bleu has also been selling well recently, thanks to the additional cash rebates of up to 18% that were offered by the developer. The developer, UIC has till June 2017 to sell their last 12 units. UIC’s Mon Jervois, is also offering their purchasers 15% ABSD cash rebate in April this year and 2 sales were transacted this month for a one bedroom unit 614 sqft at $2,256 psf as well as another two bedroom unit 1,001 sqft at $2,220 psf.
(Artist's Impression of Mon Jervois)
Good outlook for 2017
New, spacious units and developments in Tomlinson Heights, Leedon Residence and TwentyOne Anguilia Park are also credited for 2016’s sales increase. Out of the 16 transactions in the first quarter of 2017, five are from Leedon Residence, a Guoco Land project. Guoco Land acquired its TOP in June of 2015. Unit sizes range from 4,704 sqft to a an eye-popping 8,051 sqft (S$10.15 million to S$12.50 million)
In April of this year, Hotel Properties sold two 5-BR apartments at Tomlinson Heights, a 36-storey freehold project that was completed in August 2014. A 14th floor unit sold for S$10.75 million (S$2,656 psf) while a 34th floor unit fetched S$11.15 million (S$2,755 psf). One unit on the 23rd floor of Wing Tai’s Le Nouvel Adrmore condominium sold for S$15.17 million (S$4,005 psf) last March.
Currently, the highest priced transaction for 2017 is still the sale of a mid-level apartment in the Signature Tower of The Marq on Paterson Hill. The unit sold for S$21.8 million (S$3,498 psf). Seller and former owner, permanent resident and Chinese national Chan Ki, acquired the unit from the developer for S$26.4 million in 2007.
Sales agents do not see further improvement in sales this year, unless the additional buyer’s stamp duty (ABSD) is reduced.