The Significance Of Foreign Buyers For Singapore Luxury Property Market
Luxury properties are synonymous with District 9 in Singapore where the famous Orchard Road shopping belt is located. Today developers are finding it more difficult to sell luxury new launches without the foreign buyer market.
A penthouse at the St Regis Residences gained the wrong attention after 3 failed attempts to sell it.
The five-bedroom suite at the St. Regis Residences, with a private pool and a 180-degree panoramic view, received no offers during its third auction by realtor Knight Frank on Thursday. That’s even after the price was lowered by 14% from earlier this year, to S$15.5 million ($11.5 million).
The property, owned by the son of Indonesian billionaire Tahir, is one of many luxury homes struggling to sell in a Singapore market adversely impacted by a 60% stamp duty on foreign buyers, along with the largest crackdown on money laundering. The moves have slowed purchases by the super rich to a trickle.
The malaise was on stark display at the auction conducted by Knight Frank. In a largely empty auditorium with fewer than 20 attendees, none of the 16 properties up for sale got any public bids — including multi-million dollar seafront villas with amenities like private pools and elevators.
The St. Regis apartment, spanning about 6,684 square feet (621 square meters), is owned by Jonathan Tahir, according to property records. The Indonesian is the executive chairman of MYP Ltd., a property investment firm based in Singapore. He’s a scion of the Tahir family, whose Mayapada Group conglomerate holds interests in everything from banking to health care.
Property Developers Resort To Slashing Prices As Last Option
The latest to reduce prices is also a luxury development and it is located close to St Regis Residences.
The 192-unit Cuscaden Reserve is located on Cuscaden Road in prime District 10, off Orchard Boulevard. The luxury condo was completed in August 2023.
Singapore property developer SC Global and its joint venture partners, Hong Kong-listed New World Development and Far East Consortium, have slashed asking prices at Cuscaden Reserve by as much as 20%.
Based on caveats lodged to date, 12 units (6.25%) out of 192 have been sold at an average price of $3,625 psf. Hence, the new starting price reflects a 20% price cut.
Do you intend to buy or sell your property?
You may be thinking what is the next step for you and if it is worth going through the necessary work to buy or sell your property.
When is the best time to sell and can I sell for a better price than my neighbours?
What are my options for buying a property and how can I get the best deal?
Here at The Landed Collective, we specialise in residential properties and that means Condos, Landed Houses and New Developer Sales.
Before you start anything, speak to us for a complimentary consultation as our property agent team will provide you with comprehensive advice, run through the essentials on the property market and answer any questions you may have.