Foreign buyers of two luxury condos in District 9 pay ABSD of 30%Foreign buyers recently acquired two luxury condo units in Singapore’s District 9 despite the higher buyer’s stamp duty that came into effect in April. According to URA data, a four-bedroom unit at freehold condo New Futura was bought by a Chinese national for $12.5 million on May 3rd, paying an ABSD rate of 30% or $3.75 million. The seller had purchased the unit in January 2018 for $9.13 million, making a gain of $3.37 million after a five-year holding period.
A separate transaction was conducted at Yong An Park, a freehold development on River Valley Road, with a six-bedroom townhouse unit being scooped up by a Chinese buyer for $14.08 million ($1,824 psf) on 5th May, with an ABSD of 30% also paid at $4.2 million. The seller made a 47% capital gain after holding the property for 15 years, having originally purchased the unit for $9.58 million in February 2008.
Both these luxury condo purchases reveal the intent of foreign buyers to invest in Singapore’s high-end real estate sector despite the hike in ABSD. New Futura is a twin 36-storey tower residential development designed by American architecture firm Skidmore, Owings and Merrill (SOM), while Yong An Park was completed in 1986 with a mix of one- to four-bedroom apartments from 1,023 sq ft to 3,778 sq ft, three- to five-bedroom penthouses, and six-bedroom strata-titled townhouses from 7,718 sq ft.
It is a testament to Singapore’s renowned property market that high-net-worth foreign buyers are still willing to invest, even amid the ABSD hikes. Lee Sze Teck, senior director of research at Huttons Asia, notes that this purchase “would suggest that Singaporeans and PRs may not be able to purchase, or are not interested, in such high-end properties.”
Despite the current market situation, Singapore’s luxury property sector is still in demand from foreign buyers. Two recent luxury condo purchases in prime District 9 by Chinese nationals prove this, with both buyers paying an ABSD of 30% instead of the new 60% rate as their option to purchase had been granted prior to April 26th. New Futura, a freehold development by developer City Developments Ltd, had a four-bedroom, 2,691 sq ft unit sold for $12.5 million, achieving a 37% capital gain since its initial purchase inJanuary 2018. Yong An Park, which was completed in 1986, saw a 6-bedroom, 7,718 sq ft townhouse sold for $14.08 million after 15 years, netting a $4.5 million gain for the seller.
The complex will offer 525 residential units across 40 storeys and have a six-storey retail and F&B mall. Residents of Former JCube will appreciate the proximity to top-notch shopping, entertainment and lifestyle amenities, including the Jurong East Swimming Complex, IMM Shopping Mall and Lakeside Garden.
These transactions highlight the confidence of foreign buyers in Singapore’s real estate market and its potential for long-term capital gains.
