Singapore (Bloomberg): Singapore’s first mass-market private residential project launched since new curbs were introduced saw the development almost all taken as homes were sold at lower-than-usual prices.
The LyndenWoods development sold 324 units Saturday, the first day it started to accept bookings, CapitaLand Development said in a statement the same evening. That’s about 94% of the 343 units to be built at a business park in the city’s south.
The launch came over a week after the introduction of surprise measures targeting speculators in the property market. Owners must now hold their homes for at least four years if they want to avoid paying a seller’s tax, from three previously, while those who still choose to do so face higher levies than before.
CapitaLand Development - part of CapitaLand Group that’s owned by Singapore state investor Temasek Holdings Pte. - said LyndenWoods homes were sold at an average price of S$2,450 ($1,914) per square foot to mainly professionals, couples and families who were attracted by its long-term investment potential.
That’s lower than median rates for similar units across Singapore and the district. Another project about a mile away has sold less than half of its 358 units after its launch earlier this year.
The early performance may validate policymakers’ concerns about a trend of flipping properties for a quick profit, which had driven a renewed jump in home prices and risked affecting affordability in one of the world’s most expensive residential markets.
More than two blank checks were submitted for each unit at LyndenWoods - a step typically taken by interested buyers to ballot for units - and its sales show that "buyers are not concerned” about the extension of the sellers’ tax, Mark Yip, chief executive officer of real estate agency Huttons Asia Pte., said in a statement.
Private home prices grew for a third straight quarter in the three months ended June, although the pace slowed to 0.5%, preliminary data show.
Not all projects have outperformed. High-end homes in the central business district have struggled since seperate curbs in 2023 raised levies on foreigner purchases, and the projects have been less popular among local buyers due to relatively higher pricing and a lack of amenities.
One such luxury project boasting over 680 units, W Residences Marina View, was also slated to accept bookings on Saturday. IOI Properties Group Bhd., its Malaysian developer, has not publicly released data on its performance.
More projects are lined up for sale in coming weeks, and may give further clues of how buyers are digesting the measures. The opening sales weekend for private projects usually sees the bulk of transactions, and is closely watched for an indication of market sentiment.
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