Discounts galore from developers post-ABSD...

Developers are already offering packages on homes to offset the stiff new stamp duty measures that came into effect only two days ago.

Far East Organization is offering a 5% relief package to affected buyers at all of its already-launched projects.

It will reimburse buyers 3% of the unit price to offset the new stamp duty. Buyers will also get a furniture voucher worth 2% of the flat price.

They will get the voucher only after putting down a 30% deposit if the project has not been completed.

The package applies across the board to Singaporeans, permanent residents (PRs) and foreigners, so foreigners will still be worse off after the new measures.

Far East's already-launched projects have another discount that differs between properties.

Prices of units at its Seastrand project in Pasir Ris Drive 3 are discounted by up to14%, making the cheapest unit an estimated $937psf. But with only three- and four-bedroom units left and the smallest three-bedder at 1,109sqft, the minimum purchase now would cost about $1.04 million before stamp duty.

With an additional 10% buyer's stamp duty for foreigners of $104,000 now, Far East's relief package would help a buyer save almost $52,000 - about $30,000 initially and the rest subsequently.

However, a Far East agent said that unofficially the discount rate could go up to 16% of the original unit price. This means buyers can negotiate a 21% discount off the original total price by combining the uniform 5% cut with the discount that applies to the Seastrand.

This would more than offset the extra stamp duty incurred, although it is believed that the discount applies on a case-by-case basis.

Far East has not announced a dateline for its relief package but the agent said it could last until the end of this month.

The Seastrand's temporary occupation permit (TOP) is expected on Dec 31, 2016.

Wing Tai's luxury Helios Residences at Cairnhill Circle is also offering a relief package, said a company sales agent.

Buyers will get a cash rebate of up to 2% of the total price upon payment. That goes up to 2.5% at the start of the second year of occupation and 3% at the start of the third year.

They will not be allowed to sell their unit for three years following purchase.

The smaller units can cost around $4.2 million, said the agent, adding that the relief package is meant to help "lessen the burden" on customers.

The agent said the deal is only applicable to Helios Residences, as its target market is foreigners, who are more likely to be affected by the stamp duty imposition, but did not specify a deadline. Helios Residences obtained its TOP on Jan 28.

Sales agents at Keppel Land, UOL and CapitaLand did not know of any discount packages being offered.

Real estate agents at DWG, DTZ and Huttons also said their firms were not offering discount packages, but some said they might be able to negotiate an additional 1% cash rebate.

Source: The Straits Times

Given the partial/full absorption of ABSD by developers through the additional discounts that they are giving on their projects, the latest property measure is looking increasingly like a transfer of wealth from developers to our Government...
.

Property Spotlight: The Cairnhill area (Part 1)

With a slew of condominiums being completed in the Cairnhill area, such as SC Global’s 240-unit Hilltops, Wing Tai Holdings’140-unit Helios Residences and, most recently, the 58-unit Ritz-Carlton Residences, investor interest has returned to the neighbourhood.

The most recent recorded transaction at the freehold Hilltops was in August, when a 1,335sqft unit on the third floor was sold by the developer for $4.71 million ($3,528psf). At the freehold Helios Residences next door to Hilltops, a similar-sized unit on the 13th floor was sold for $3.42 million ($2,604psf) in a sub-sale. Another similar-sized unit on the first level of Helios Residences was sold by the developer for $4.05 million ($3,084sqft). At Ritz-Carlton Residences, developer KOP Group’s asking price is from $3,800psf.

Meanwhile, at the fully sold 165-unit Urban Suites by CapitaLand, located on Hullet Road, off Cairnhill Road, there was a recent sub-sale of a1,572sqft three-bedroom unit on the 15th level for $4.43 million ($2,821psf). The seller had purchased the unit when the project was first launched early last year for more than $3.88 million ($2,472psf), hence recognizing a capital appreciation of about 14% in less than two years.

Urban Resort Condominium, next door to Urban Suites, a joint-venture development by CapitaLand, is more exclusive, with just 64 units. As at end-September, 34 units have been released and 23 sold, with the latest transaction at a median price of $2,968psf.

Next to Urban Suites and Urban Resort is Sing Holdings’ 229-unit The Laurels. As at end-September, 213 units at the development have been sold. The most recent transaction, according to URA, was for a 549sqft unit on the ninth floor that changed hands in a sub-sale for $1.62 million ($2,951psf) last month. The seller had purchased the unit from the developer in March last year for $1.44 million ($2,629psf).

Apartments in the Cairnhill district have traditionally attracted investors, given the prime Orchard Road location, as these units tend to be popular with high-level expatriate executives, say property agents.

According to Benson Koh, senior group district partner of SLP Real Estate Empire, properties in District 9 tend to draw foreign investors, who intend to use the apartments as a holiday home. “These investors are likely to favour new projects such as Urban Resorts and Urban Suites, owing to their proximity to Orchard Road,” he says.   {To Be Continued}

Source: THEEDGE SINGAPORE

.