Last year has been a triumphant moment for developers in Singapore successfully venting out their inventory before commencing into the New Year. The reason, they were catching up the ABSD deadline before the clock strikes the bell.
The Additional Buyers’ Stamp Duty (ABSD) refers to an additional tax imposed on secondary property purchases but comes in various rates based on the buyer’s profile. It was first introduced during the cooling measures dated back in July 2013. This implementation is to encourage both buyers and developers in property acquisition as it comes with financial incentives and remissions. Developers that are bound to this incurrence are given a 5-year duration to evacuate all available units they have at their disposal.
Recently, a mass number of projects have been sold due to the ratio of public demands are twice than that the number of supplies. Several Developers reported to Medias such as The Business Times regarding the additional units have been cleared out last September. This is equivalent to Cushman & Wakefield’s database that recorded about 90 per cent of the units sold. Projects such as the Northwave exclusive condominium from Hao Yuan and Cayman Residences managed to clean out the shelves.
According to the senior manager (research) for Singapore & Southeast Asia at Cushman & Wakefield Wong Xian Yang stated the vast number of projects sold before the deadline are those that were commenced in 2016 and 2018 respectively. With the marketing is set to resurrected in 2017, they (the developers) were at the better odds.
Developers that reached the finish line were Far East Consortium-backed FEC Skyline, and Artra. HY Realty also was included for Queens Peak when a representative announced a good turn is taking in. Both of these projects, remained to a meagre amount of 45 units for Atra, while Queens Peak still reserved 32 units from a total of 736 units.
As for the upcoming ABSD 2022, if units are able to hold a sale from 9,000 to 10,000 per annum, with buyers are keen to look for affordable options and each purchase are inclusive with buyer’s incentives, then the market should be in a good state. While this year may be cleared up, note that there are still on the rat race. A Frasers, for instance, are bound by next year’s deadline, has sold about 768 units. As mentioned by their spokesperson as the developer’s unique aesthetics and architecture can draw homeowners. Meanwhile, Qingjian Realty’s deputy general manager Yan Chong said the Thomson province is unlikely to see any uninterested buyer since JadeScape’s launch.
As long as developers continue to craft the right steps, with the demands keep rising on a steady feat, any concerns can be assured of.
08 November 2019
Developers confident of beating 2020 ABSD deadline