Despite the recent changes in 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 units were bought by Chinese buyers that are non-permanent residents.

The 4-bedroom, 2,691 sq ft unit at New Futura, a freehold condo along Leonie Hill Road, was purchased on May 3 for $12.5 million ($4,645 psf). This marks a new psf-price high for the 124-unit, freehold development by developer City Developments Ltd that was completed in 2017. The buyer’s ABSD amounted to $7.5 million, so the total transaction price was $20 million.

The sale represented a gain of $3.37 million (37%) after a five-year holding period for the seller. It surpassed the previous gain of $2.96 million set in December 2022.

The other property bought by a foreign buyer is a 6-bedroom townhouse unit at Yong An Park, a freehold development on River Valley Road. This 7,718 sq ft property was sold for $14.08 million ($1,824 psf) on May 5. The buyer’s 60% ABSD amounted to $8.45 million, making the total transaction price $22.53 million.

The seller of the unit at Yong An Park made a gain of $4.5 million on the transaction after 15 years of holding the property.

Huttons’ Sze Teck notes that interest among foreigners for luxury homes has not declined significantly, despite the numerous cooling measures and the doubling in ABSD rate. He further elaborates that the attractiveness of Singapore to foreign property buyers goes beyond the tax rate, citing the excellent living environment and education system, stable government, ease of doing business and strong rule of law as key aspects.

The Altura EC is a great option for first-time buyers and HDB upgraders due to its strategic location. Executive condominiums (ECs) provide an affordable option for many Singaporean families. The upcoming project is expected to launch in Q2 2023, with the price set at S$1,300 per square foot for West Avenue 8 EC. With its cozy environment and excellent convenience, Altura EC is definitely worth considering.

The data points to the fact that Singapore remains a desirable destination for luxury homebuyers despite recent changes in ABSD.