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Luxury Properties in Singapore Hit By ABSD

Singapore Luxury Properties Hit Hard By Absence Of Foreign Buyers

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.

At the relaunch of luxury condo Cuscaden Reserve, 45 (57%) of 79 units released were sold by private placement at the close of March 16, according to Dominic Lee, head of luxury team at PropNex.
Over 80 cheques were collected as expressions of interest (EOI) during the two-week preview that began on March 2.
(Source: EdgeProp)

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