The Wee family, one of Singapore’s richest, have just bought 45 unsold units at The Nassim for $411.6m. At a price of ~S$ 2300 PSF, it represents an 18% discount over prevailing selling price of individual units. According to the Straits Times, the bulk sales comes timely as it helped Capitaland avoid QC charges.
QC rules require most developers here to pay extension fees for condo units which are not sold within two years of the completion of the project; the fees are pro-rated according to the proportion of units unsold. This has been a headline topic for awhile now and affects properties built by developers who have foreign investors.
A similar, but lesser known regulation that affects all developers (local or foreign owned) is the ABSD remission claw-back. Since December 2011, developers have also been required to develop a given residential site they acquire and sell all the units within five years – failing which, ABSD with interest becomes payable.
We took a look at projects where potential QC charges and ABSD remission claw-back could hit developers if remaining units are not sold in 2017. To avoid such charges, developers have either resorted to bulk sales (as in the case of The Nassim), rolled out discounts to move units or introduced innovative “stay-now-pay-later” schemes.
Buyers who have been sitting on the sideline for a while now may want to pay special attention to some of the projects listed below. In terms of timing, this may be a good time to engage agents from the developer sales teams as ABSD / QC charges may give developers good reasons to dangle a good deal.
Click on the properties to see price trends, supply and demand profile for each of them.
|Projects that may be subject to ABSD remission claw-back if not fully sold by 2017|
|Lakeville @ Jurong||22|
|Pollen & Bleu||10|
|Sant Ritz@Potong Pasir||13|
|Skypark Residences (EC)||27|
|Vue 8 Residence||18|
|Projects that may be subject to QC charges if not fully sold by 2017|
|3 Orchard By-The-Park||9|
|Le Nouvel Ardmore||10|
|OUE Twin Peaks||9|
|Twenty One Angullia Park||9|
|White House Residences||10|
Stay tuned for more insights and analysis in our upcoming FY 2016 Singapore Property Market Report