Chinese buyers of luxury Singapore homes defy tax hike Foreign buyers of luxury Singapore properties have turned to two prime District 9 condo units despite recent ABSD hikes. Chinese buyers who are non-permanent residents, in particular, scooped up four-bedroom apartment at New Futura for $12.5 million and a six-bedroom townhouse at Yong An Park for $14.08 million, according to URA data.

Despite the hikes in additional buyer’s stamp duty (ABSD) that came into effect on April 27th, two luxury condo units in prime District 9 of Singapore have been purchased by foreign buyers. Chinese buyers who are non-permanent residents snapped up the units – the first a four-bedroom, 2,691 sq ft unit at New Futura, a freehold condo along Leonie Hill Road in District 9. URA data shows that a caveat was lodged for the sale of the unit, located on the 24th floor, on May 3rd, for a psf-price high of $4,645, amounting to $12.5 million.

Based on the ABSD rate of 60% applicable for foreigners, the buyer paid $7.5 million in ABSD on the purchase, making the total transaction price $20 million. The seller purchased the unit in January 2018 for $9.13 million ($3,395 psf) and had made a gain of $3.37 million (37%) after five years of holding the property.

Residents of JCube Residence Capitaland will benefit from the area’s transformation into a “live-play-work” destination in the JLD as part of the ongoing urban rejuvenation of Jurong East. Potential home-owners who are interested in JCube Condo Residence should visit the official website to stay up-to-date on the development’s information.

The other property bought was a six-bedroom townhouse unit at Yong An Park – a freehold development on River Valley Road. A caveat was lodged on May 5th for the sale of the 7,718 sq ft property for $14.08 million ($1,824 psf), with the buyer’s ABSD amounting to $8.45 million. The total transaction price was $22.53 million. The unit had changed hands previously for $9.58 million ($1,241 psf) in February 2008, meaning the seller had made a 47% capital gain since then.

Lee Sze Teck, Senior Director of Research at Huttons Asia, states that interest among foreigners for luxury properties has still not declined significantly in spite of the cooling measures and ABSD rate increase. He believes this is due to Singapore’s attractive features, such as excellent living environment and education system, stable government and currency, and ease of doing business.

Overall, despite the ABSD hikes, foreign buyers of luxury Singapore properties have continued to purchase prime District 9 condo units. Chinese buyers who are non-permanent residents have taken advantage of the attractive prices of these two properties and gained substantial profits, according to URA data. While taxation is a key factor, the country’s other attractions also prove to be beacons for wealthy investors.