Chinese buyers pay top price and 60% ABSD at New Futura, Yong An Park

Foreign investment: Chinese buyers still see Singapore as a safe havenForeign buyers show love for Singapore luxury market, despite recent ABSD hikes

Despite the recent increase in the additional buyer’s stamp duty (ABSD) that came into effect on April 27, two luxury condo units in prime District 9 have been purchased by foreign buyers. According to Lee Sze Teck, senior director of research at Huttons Asia, the crosscheck with URA’s analysis of property purchases by nationalities and residential status show that the units were acquired by Chinese buyers that are non-permanent residents.

One of the properties, a four-bedroom, 2,691 sq ft unit at New Futura, was sold on May 3 for $12.5 million. This is a freehold condo along Leonie Hill Road in District 9, and marked a new psf-price high for the 124-unit, freehold development by developer City Developments Ltd that was completed in 2017. The purchaser, who would be subject to the current ABSD rate of 60%, had to pay an additional $7.5 million on the purchase. The total transaction price for the buyer was $20 million.

The seller of the unit at New Futura had purchased the unit in January 2018 for $9.13 million ($3,395 psf), reaping a 37% gain on the sale after a five-year holding period. This is the most profitable resale transaction at New Futura to date, exceeding the gain of $2.96 million set in December 2022.

New Futura is a twin 36-storey tower residential development designed by American architecture firm, Skidmore, Owings and Merrill (SOM). The units here comprise a mix of two-bedroom apartments of 1,098 sq ft to four-bedroom apartments of 2,691 sq ft with double-volume ceilings. They also have two 7,836 sq ft penthouses at the top of each tower.

The other luxury condo property that was scooped up by a Chinese buyer is a six-bedroom townhouse unit at Yong An Park, located on River Valley Road. A caveat was lodged on May 5 for the sale of the 7,718 sq ft property for $14.08 million ($1,824 psf). Once again, the buyer’s ABSD payment of 60% came up to $8.45 million. The total transaction price amounted to $22.53 million.

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The seller of the unit at Yong An Park had bought it for $9.58 million ($1,241 psf) in February 2008, and made a 47% capital gain after holding the property for 15 years. Yong An Park was completed in 1986, and has a total of 288 residences. Typical units comprise one- to four-bedders between 1,023 sq ft and 3,778 sq ft, in addition to the three- to five-bedroom penthouses and six-bedroom, strata-titled townhouses. It is a five-minute walk to the Great World MRT Station on the Thomson-East Coast Line.

Huttons’ Sze Teck notes that the interest among foreigners for luxury homes has not decreased significantly, despite recent measures to cool the market. According to him, the country’s excellent living environment, education system, stable government and currency, ease of doing business and strong rule of law, are some aspects that are still attracting them.