CDL postpones luxury condo preview after latest cooling measures, other private launches unaffected

SINGAPORE: City Developments Limited (CDL) has postponed the preview of a luxury freehold condominium following the latest property cooling measures announced by Singapore earlier this week. 

The preview for the 246-unit Newport Residences was originally slated to start this weekend, a spokesperson for the developer said on Friday (Apr 28).

Newport Residences is part of the 45-storey Newport Plaza mixed-used development located on the site of the former Fuji Xerox Towers along Anson Road. 

“With the latest property-related measures released by the government … the market will need time to absorb the news,” the spokesperson said. 

“We will monitor market conditions closely and unveil its launch at an appropriate time.” 

Other condominium developments, however, are expected to proceed with their launches. This includes Blossoms by the Park by EL Development - scheduled for this Saturday - which will go ahead, checks by CNA confirmed.

The preview for the 99-year leasehold project with 275 residential units, located at 9 Slim Barracks Rise, started on Apr 14. 

"We believe that there will definitely be some impact from the latest measures on our launch," said EL Development's managing director Lim Yew Soon. 

"However, we feel that the impact may be limited as Blossoms By The Park is in the one-north district and caters mainly to Singaporeans and PRs rather than foreigners." 

Despite the new cooling measures, EL Development will not be making any changes to its development plans for the condominium, he confirmed. 

Under Singapore's third round of property cooling measures since December 2021, foreigners buying a residential property have to pay an additional buyer’s stamp duty (ABSD) of 60 per cent – doubled from 30 per cent previously.

This was the steepest increase among cooling measures announced by the government late Wednesday night.

Singaporeans buying their second residential property will pay an ABSD rate of 20 per cent, up from 17 per cent, while those buying their third and subsequent residential properties have to pay an increased rate of 30 per cent, up from 25 per cent. 

A rate of 30 per cent also applies to permanent residents buying their second residential property. PRs buying their third and subsequent residential property will pay an ABSD of 35 per cent, up from 30 per cent.

Figures released by the Urban Redevelopment Authority on Friday showed that private home prices rose by 3.3 per cent in the first quarter of 2023. This was up from a 0.4 per cent increase in the preceding quarter. 

The new measures are meant to dampen local and foreign investment demand amid renewed interest in residential properties, Minister for National Development Desmond Lee said on Thursday. 

Based on 2022 data, the new measures will impact about 10 per cent of all transactions, he added. 

Of this 10 per cent, 5 percentage points comprise Singapore citizens and PRs purchasing their second and subsequent properties, 4 percentage points comprise foreign buyers, and the last 1 percentage point is made up of entities, said the Ministry of National Development on Friday in response to CNA queries. 

Among other upcoming condominium developments, The Reserve Residences by Far East Organization will go ahead with its preview in May and launch in June. 

Lentor Hills Residences, a joint project by Hong Leong Holdings, GuocoLand and TID, is also expected to remain on schedule “subject to authority approvals”. 

“The market needs time to review the news as the latest measures are still fresh. But we are monitoring market conditions closely and expect the industry to remain resilient,” a Hong Leong Holdings spokesman told CNA, when asked about the impact of the property cooling measures on unit sales. 

The planned launch of UOL's Pinetree Hill at Pine Grove in June or July this year is also likely to proceed, said the developer’s general manager of residential marketing Anson Lim. 

The project's location near popular schools will likely draw Singaporeans buying and owning homes for occupation, he said.