http://www.businesstimes.com.sg/sub/...07940,00.html?

Published January 26, 2012

Over 90% of units sold in Watertown picked up by S'poreans

Lower than normal foreign share points to ABSD effect

By KALPANA RASHIWALA


(SINGAPORE) Initial evidence suggests that the additional buyer's stamp duty (ABSD) may have succeeded in cooling foreign buying.

More than 90 per cent of the over 550 units sold so far for Watertown condo in Punggol have been taken up by Singaporeans. This is down from a share of about 80 per cent for Singaporean buyers in other surburban condos - or 'transurban' condos as developer Far East Organization likes to call them - that were launched by the property giant last year, such as The Tennery above the Ten Mile Junction LRT Station in Bukit Panjang, The Greenwich in Seletar Hills and euHabitat at Jalan Eunos.

Singaporean buyers have also accounted for about 80 per cent of buyers at The Hillier next to the upcoming Hillview MRT Station on the Downtown Line, which was previewed last month after the Dec 7 announcement of the introduction of the ABSD - although options to buyers were issued only from Jan 1 this year.

A source reckons that foreigners and permanent residents may be drawn to the Hillview location given its proximity to the Bukit Timah area and good schools which many well-heeled PRs in particular would be familiar with.

From Dec 8, 2011, foreigners pay 10 per cent ABSD on any residential property purchase in Singapore. Permanent residents pay 3 per cent ABSD on their second and subsequent residential property while Singaporeans pay the same ABSD rate on their third and subsequent residential property.

As for Watertown, which Far East is developing jointly with Frasers Centrepoint and Japan's Sekisui House, about half of the buyers are from District 19 (Sengkang, Hougang, Punggol and Serangoon) and two thirds are residing in public housing flats. 'Interestingly, some of our buyers are purchasing the units at Watertown for their weekend/holiday homes and also for retirement. Many are also buying for their children as well,' said Far East's chief operating officer, property sales, Chia Boon Kuah.

Explaining the strong sustained sales momentum for Watertown, which went on the market last Wednesday, Mr Chia pointed to the project's uniqueness. 'It's a one-of-its-kind mixed use development that offers waterfront living integrated with a mall (Waterway Point) and the Punggol MRT Station.'

He also points to the strong appeal of homes in mixed-use developments, which was also seen in The Tennery, Greenwich and The Hillier.

Another selling point for Watertown, which will have 992 residential units, is the expertise of Far East's partners in the project - Frasers Centrepoint in retail mall operations and Sekisui in innovative green construction technology - adding to the brand equity of Watertown, said Mr Chia.