Is this proof that Singapore’s luxury market is recovering?
Is this proof that Singapore’s luxury market is recovering?
More robust figures than we’ve become accustomed to
A healthy 55 percent of units at The Peak @ Cairnhill II, a freehold 18-storey luxurious development in Singapore’s prime Orchard Road district, were sold at launch in January.
The project from TG Development has reported 34 out of 60 units sold already. The units were sold on an average price of SGD2,700 per sqft.
“The luxury market is indeed showing signs of improvement in 2017. We are heartened by the good take up rates of our development,” said Ong Boon Chuan, Managing Director of TG Development.
Data from the Urban Redevelopment Authority’s (URA) Q3 and Q4 2016 demonstrated that similar high-end developments such as OUE Twin Peaks and Gramercy Park also saw promising sales. 237 and 44 units were sold at OUE Twin Peaks and Gramercy Park respectively in 2016.
“This shows quality developments such as ours can still move amid the challenging property market in Singapore. Buoyed by market confidence, we felt this was opportune time to launch The Peak @ Cairnhill II and our results speak for themselves,” said Ong.
More: The multimilion-dollar decay of old Singapore bungalows
The strong take-up rates can be put down to the Enhanced Deferred Payment Scheme, explained Ong, with most units sold through this scheme.
Under the scheme, buyers are only required to pay a 20 percent option fee. They are also given a two year period to exercise the option-to-purchase.
Buyers will only need to pay a 20 per cent option fee. They also will be given a two year period to exercise the option-to-purchase. In the meantime, they sign a master tenancy agreement with the developer which allows them to rent out the unit and get rental income.
Currently, the developer is offering a 12 percent discount while absorbing the buyers’ property tax and two years of maintenance fees.
2016 was a challenging year for Singapore’s property market, with a number of government cooling measures such as the Additional Buyers’ Stamp Duty (ABSD), Sellers’ Stamp Duty (SSD) and Total Debt Service Ratio (TDSR) being introduced.
Read next: The multimilion-dollar decay of old Singapore bungalows
Source: Property Report