Chinese buyers pay top price and 60% ABSD at New Futura, Yong An Park
By Atiqah Mokhtar/ EdgeProp Singapore |
May 16, 2023 9:55 PM SGT
A 2,691 sq ft unit at New Futura was purchased by a Chinese buyer for $12.5 million (Picture: Samuel Isaac Chua/The Edge Singapore)
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SINGAPORE (EDGEPROP) - Two luxury condo units in prime District 9 have recently been purchased by foreign buyers, despite the recent hikes in additional buyer’s stamp duty (ABSD) that came into effect on April 27. According to Lee Sze Teck, senior director of research at Huttons Asia, a 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 is a four-bedroom, 2,691 sq ft unit at New Futura, a freehold condo along Leonie Hill Road in District 9. Based on URA data, a caveat was lodged for the sale of the unit, located on the 24th floor, on May 3 for $12.5 million. At $4,645 psf, it marked a new psf-price high for the 124-unit, freehold development by developer City Developments Ltd that was completed in 2017.
Latest transactions and location of New Futura: EdgeProp LandLens
Based on the current ABSD rate of 60% applicable for foreigners, the Chinese buyer paid $7.5 million in ABSD on the purchase. Similar to buyer’s stamp duty, ABSD must be paid within 14 days from the date of exercising the option to purchase, or the date of the sale and purchase agreement. The total transaction price for the buyer was $20 million.
The seller of the unit at New Futura purchased the unit in January 2018 for $9.13 million ($3,395 psf). Hence, the gain from the sale was $3.37 million (37%) after a five-year holding period. This is the most profitable resale transaction at New Futura to date. It surpasses the previous gain of $2.96 million set in December 2022. It was for the sale of a 2,691 sq ft unit sold for $12 million ($4,459 psf).
New Futura, located along Leonie Hill Road, is a twin 36-storey tower residential development designed by American architecture firm Skidmore, Owings and Merrill (SOM), the design architect for luxury developments Wallich Residence and Skywaters Residences in Tanjong Pagar.
Units at New Futura 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. There are also two 7,836 sq ft penthouses – one 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, a freehold development 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). The buyer’s 60% ABSD amounted to $8.45 million, on top of the $14.08 million purchase price. The total transaction price amounted to $22.53 million.
The seller of the unit at Yong An Park raked in a gain of $4.5 million on the transaction. The unit had changed hands previously for $9.58 million ($1,241 psf) in February 2008. As such, the seller made a 47% capital gain after holding the property for 15 years.
The 7,718 sq ft townhouse at Yong An Park was purchased for $14.08 million (Picture: Samuel Isaac Chua/The Edge Singapore)
Completed in 1986, Yong An Park has a total of 288 residences. Typical units comprise one- to four-bedders between 1,023 sq ft and 3,778 sq ft. There are three- to five-bedroom penthouses with sizes from 3,466 sq ft and 6,878 sq ft, as well as a collection of six-bedroom, strata-titled townhouses from 7,718 sq ft. The development is a five-minute walk to the Great World MRT Station on the Thomson-East Coast Line.
Latest transactions and location of Yong An Park: EdgeProp LandLens
Huttons’ Sze Teck notes that interest among foreigners for luxury homes has not declined significantly, despite the fresh round of cooling measures and the doubling in ABSD rate. “The attractiveness of Singapore to foreign property buyers goes beyond the tax rate,” he remarks. “The excellent living environment and education system, stable government and currency, ease of doing business and strong rule of law are some aspects attracting them to Singapore.”
https://www.edgeprop.sg/property-news/chinese-buyers-pay-top-price-and-60-absd-new-futura-yong-park
