SINGAPORE - The sale is on for private residential projects in the prime central region, following price cuts for city fringe and suburban projects which helped developers move more unsold units.
Palms @ Sixth Avenue, a strata landed semi-detached project, is offering to absorb the 7 per cent additional buyer's stamp duty which Singaporean home owners have to pay for a second residential property.
With this, prices will go from $5.3 million to $4.9 million for a 4,510 sq ft unit, and from $7 million to $6.5 million for a 5,834 sq ft one. The discounted prices translate to a per square foot range of $1,086 to $1,114.
The project will receive its temporary occupation permit (TOP) in the first quarter of next year.
Meanwhile, Hallmark Residences along Ewe Boon Road in Bukit Timah is offering a discount of more than 10 per cent for several of its units.
A 969 sq ft two-bedder will cost $1.9 million, down from $2.1 million. Three-bedders will cost $2.8 million instead of $3.1 million, and four-bedders, $3.5 million instead of $4 million.
R'ST Research director Ong Kah Seng said "it was only a matter of time" before core central region (CCR) projects started to cut prices.
"They have been left substantially unsold for quite a long time, and generally buyers' interest in CCR projects has been very weak," he said.
"Well-located projects like these have hefty price tags, and, previously, there wasn't the total debt servicing ratio (TDSR) framework limiting large loans."
The TDSR, which requires financial institutions (FIs) to take into consideration borrowers' other debt obligations when granting property loans, is aimed at strengthening credit underwriting practices by FIs and encouraging financial prudence among borrowers.
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