StockTalk (5.19): Are Discounted Condominium Projects in Singapore's Central Area Worth Considering?
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At least eight new condominium projects in the Core Central Region (CCR), a prime area of Singapore, have been reducing their prices in April and May to attract buyers. One example is One Draycott, a project in District 10 developed by Selangor Dredging Bhd, which has sold 19 units since its launch in 2018 for prices ranging from just under S$2.3 million to S$3.5 million.
Industry experts suggest that some developers may be lowering their prices before the Additional Buyer's Stamp Duty (ABSD) deadline that requires them to sell all unsold units on the site or pay a hefty stamp duty fee running into tens of millions of dollars. This year, around 30 residential properties are predicted to reach this crucial sales deadline, making it more challenging for developers to sell their units. The new ABSD regime, which came into effect on Apr 27, increases the tax rate from 30% to 60% for foreign buyers purchasing residential properties in CCR. As a result, analysts predict that demand for prime residential projects may slow down, leading developers to offer discounts to keep up with sales momentum. On the other hand, some may see this as an opportunity for Singaporeans to consider shifting towards condos.
Do you believe that more developers will start offering discounts to attract buyers? Would you consider shifting towards purchasing a condo in Singapore now that some developers are offering discounts in the Core Central Region? What factors would influence your decision?
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GodSpeed289 : This is naturally good news for Singapore citizens looking to purchase their first private property. The 2nd group, property investors, even with discounts, they would not feel worthwhile given the increase in ABSD for those buying a second property (20%) or third and subsequent property (30%) will eat into any returns.
ZnWC : The ABSD may look steep but after factor in increasing rental fee and appreciation of property value, it still a pretty good investment in long run.
But you need to buy one that is affordable within your own mean. Don't forget that there's property tax (and income tax) for holding a property tax if you're not staying there.
For a salary person, it can be risky because one may lose your job during recession (if it happens). Hence DYODD if want to invest in property.
No_Horse_Run_4896 : Land of gold in Singapore, it will always increase in price on the long terms. But it is still too expensive at the moment to even afford the door of the unit.
cola1010 : When looking at discounted condominium developments in Singapore's central business district, it is important to evaluate factors such as location, developer reputation, property quality, pricing and discounts, possible returns, financing possibilities, and legal considerations. Thorough research, comparing costs with comparable homes, and evaluating long-term investment prospects are important to ensuring we understand the risk involved.
EYSY : Think it's a great opportunity for those for haven't have any property yet to wait a while for higher discounts from developer on new units if you're not particular of unit facing, layout etc. As the ABSD for second property and foreigners have increased substantially, the demand will be lower and not much competition out there. Think you can get a good bargain on your first house. Good luck!
kk1629 : I think it's possible that more developers will start offering discounts to attract buyers, especially given the current economic climate. As for buying an apartment in Singapore, the availability of discounts would certainly be a factor in my decision-making process, but there are many other factors to consider as well, such as location, amenities, and overall value for money.
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