The recent cooling measures which require foreigners buying private property in Singapore to fork out an additional 10 percent stamp duty, is expected to curb skyrocketing property prices.
And if recent transacted prices at certain luxury developments are anything to go by, the new measures could not have come at a better time.
A prime example is The Marq on Paterson Hill. The latest deal involved a 2,950 sq ft unit on a high floor which was sold to a European buyer for a whopping S$6,850 psf, a new record for Singapore’s condo market.
The average transacted price at The Marq is S$4,477 psf, making it the most expensive condominium in Singapore. Not far behind is Scotts Square, which averages at S$3,988 psf.
According to Stuart Chng, Group Division Head at Savills Residential Pte Ltd, ultra high net worth individuals are likely responsible for the record psf prices and despite the new measures, these buyers and investors are unlikely to be affected.
Long-term however, Chng foresees that transaction volumes in the private residential market will decline.
“We may witness less of such deals. With the ABSD (additional buyer’s stamp duty), the entire property market is likely to cool down as a result of psychology and purse-strings. There is a natural tendency to adopt a wait-and-see attitude as everyone is wary of how the measures would impact property prices.”