High ADSB Cost But Developers confident of selling homes Before Deadline

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Who is affected?

The Venue Residences should be fully sold by September 2017 in order for CDL to avoid the cost that was ABSD.

Even with the multi-million dollar fines entailed if they don’t sell all their residential units within five years, property developers in Singapore are unlikely to cut on property prices to bring buyers, reported The Straits Times.

Experts Say

I don’t think as many of them have some holding power, they will be slashing prices dramatically,” said Alan Cheong, Head of Research at Savills Singapore. OrangeTee’s Head of Research and Consultancy also concurs, saying “developers have been largely keeping prices steady in 2016 as the demand for new dwellings has picked up”.

Under the Additional Buyer’s Stamp Duty (ABSD) rules introduced in December 2011, developers must construct and dispose of all units in residential projects within five years of obtaining their sites. Otherwise, they should fork out a 10 percent levy based on the acreage cost, plus a five percent interest.

So the next year 2017 saw the trend of developer launching at a good entry price like Parc Riviera. Another mixed development, Park Place Residences has yet to released it prices and hence we shall see if they are following the trend too.

CDL Concerns

One of the projects with deadlines that are upcoming is CDL’s Bartley Ridge, but its developer is affirmative that it may offload the remaining two units there before the January deadline, as well as the remaining 97 units in another project, The Venue, before September next year. CDL would need to pay ABSD plus interest of around S$79 million if it fails to sell the unsold units.

“To further accelerate sales, we’ve started various advertising and promotional activities, including the CDL Dream Attract, which is appropriate to The Venue Dwellings and three other projects,” said a representative.

Huge number of unsold units

Meanwhile, The Trilinq by IOI Properties still had 303 remaining units as of October 31. In case these units aren’t disposed of by January, the developer is liable to pay S$50.9 million.

SingLand has Alex Residences: Mon Jervois, Pollen & Bleu, and three developments with unsold stock. It must fork out a total of about S$70 million if it fails to locate buyers for all these projects by February, June and December respectively.

For Mon Jervois, if we have to pay ABSD, I believe our gross profits will be able to absorb that and still provide an adequate profit,” noted Michael Ng, Group General Manager of UIC, the parent business of SingLand. “It may be better to hold on to the units and try to sell at a higher price later on, as the market for this section is improving,” he added.

KepLand releasing new blocks at Highline condominium

Life.

KEPPEL Land (KepLand) is starting its Highline Residences on April 30, with a fresh block which has 60 units released on the market. The developer had formerly sold about 86 per cent of the 210 published units at private events held for possibilities that were documented.

The developer had formerly given an indicative cost of S$2,000 psf for houses in the 99-year-leasehold condominium, which is situated within walking distance from Tiong Bahru MRT Station.

Highline Residences consists of 500 one-bedroom to four-bedroom houses, double- penthouses in addition to key flats. They’re spread across three residential towers and four low rise blocks.

There’ll be six penthouses ft to 2,260 sq ft.

Executive director, Joseph Tan, residential services said: The project’s close connectivity to carry nodes and an entire net of comforts in a mature enclave presents powerful principles for future growth.”

Mok Wei Wei of W Architects designs the project and features an elevated ridge that was green on amount five which crosses 180 metres with an extensive variety of communal and amateur facilities. New York’s High Line, a public park constructed on a historical elevated rail line inspired this.

Future residents at Highline Residences may also anticipate personalised concierge services and privileged membership. Included in these are housekeeping and limo services, and complimentary golfing at Ria Bintan Golf Club in Indonesia and privileged accessibility to the golf courses of KepLand in China.

Bernard Lee, manager (business & research) at Huttons Asia, noted the rental market in Tiong Bahru is bouncy because of its low supply.

He included: “Rental rates reached are typically more powerful when compared with other places. This could also be attributed to the exceptional tradition neighbourhood that expatriate tenants love living in.”

Aspial included in S$275 million of sales revenue from its Waterfront @ Faber project that it’s farther locked. The group expects to begin receiving cash flow when the project receives TOP, anticipated to be in H1 2017.

North-South Corridor to be ready in 2026

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The Land Transport Authority (LTA) will be calling several tenders for the construction of the 21.5km North-South Corridor (NSC) in the coming months.

With the objective of linking towns in the northern area to the city centre, the NSC is touted as Singapore’s first incorporated transport corridor, featuring constant bus lanes and cycling trunk routes, said the LTA.

Besides making it more easy to travel between Woodlands, Sembawang, Yishun and Ang Mo Kio, the continuous bus lanes are anticipated to reduce travelling time to the city by up to half an hour.

Cyclists can also look forward to the biking trunk route, which will link the various park connectors and committed cycling paths along the hallway to downtown within the HDB towns.

“The reconfigured NSC will open up exciting and new transport opportunities for Singapore, especially for residents staying along the NSC,” said LTA’s Chief Executive, Chew Men Leong.

Major construction works are anticipated to begin in 2017 and the NSC is anticipated to be finished around 2026.

Singapore’s Woh Hup will assemble Amber MRT station for a contract amount of $146 million, while MCC Group’s construction unit, China Jingye Engineering Corporation Limited (Singapore Branch), won the $188 million contract to construct the Bedok South station and its associated tunnels.

The TEL’s 13km East Coast expanse will serve residents living in the eastern part of Singapore who aren’t served by the present railroad system, for example those in Tanjong Rhu, Siglap, Marine Parade, Upper East Coast and Bedok South.

Great New Launch Property coming soon : Treasure Crest SengKang

It truly is targeted to be finished in two phases, with the first seven stations from Tanjong Rhu to Bayshore anticipated to be ready in 2023, while the remaining two stations are scheduled to be operational by 2024.