Blossoms By The Park sells 73 percent despite new cooling measures
Approximately 96 per cent of the buyers were either Singapore citizens or permanent residents, according to developer.
By 6 p.m. on 29 April 2023, EL Development had sold more than 200 out of total 275 units at its latest residential project called Blossoms By The Park.
This equates to 73 per cent of the total available units sold, and the median price transacted was $2,423 per square foot.
Except for the 2-bedroom penthouse units, all of the 1-bedroom and 2-bedroom units within the residential project have been sold, according to EL Development.
1-bedroom units starting at 549 square feet cost up to $1.3 million (or $2,352 psf), and 2-bedroom units from 678 square feet cost up to $1.5 million (or $2,211 psf).
More than 70 per cent of the 3-bedroom and its dual-key variation unit types were sold starting at $2.3 million (or $2,183 psf) and $2.1 million (or $2,276 psf), respectively.
To date, 17 out of 50 units of 4-bedroom units were snapped up. These started at $2.9 million (or $2,243 psf).
The developer’s expectations were exceeded by the overwhelming sales, which occurred just 2 days after the latest property cooling measures took effect on 27 April 2023.
Over the last two weeks, the developer received 745 cheques in total. As a result, the project was over-subscribed close to 3 times before its official launch.
According to EL Development, 96 per cent of buyers were made up of Singaporean citizens and permanent residents, with the remaining 4 per cent being foreigners.
Market watchers said the latest property cooling measures are primarily designed to discourage foreign investment purchases.
They added that the resounding success at the new launch along Slim Barracks Rise would give buyers the confidence to go ahead with their home purchase if they are financially comfortable.
Dentons Rodyk’s senior partner Lee Liat Yeang said that the strong sales on Day 1 at this new launch condo are a clear reflection of the attractiveness of Singapore’s property market.
As a matter of fact, it’s so alluring that the Singapore government had to impose a 60 per cent additional buyer’s stamp duty (or ABSD) rate to deter buying interest from foreigners.
The ABSD rates for Singapore citizens and PRs purchasing their 2nd and subsequent residential properties, on the other hand, have also been increased.
The increased ABSD rate will result in people having to sell their existing residential property first before going ahead to purchase their next, as mentioned by Dentons’ Lee.
While doing that, these buyers will rent until they are ready to buy their next residential property.
On the other hand, foreigners who are waiting on approval for their permanent residency status will also be renting as well.
As a result, many property investors are confident that rental rates of homes in Singapore will continue to rise.
Other than Blossoms By The Park, a 142-unit development The Hill @ One-North is the other site of the 2 that are surrounding Fusionopolis and Biopolis.
Analysts noted that private homes in one-north precinct do have investment potential.
They added that the estimated rental rates in one-north are 20 per cent higher than the nearby condominiums such as Heritage View and Dover Parkview, and could possibly perform well as there’s a limited number of private homes.
In the one-north precinct, there are around 400 MNCs, a number of public research institutes and prestigious education institutions including Insead and the Essec Business School, and campuses of MNCs such as Unilever’s global campus, and Unilever Campus @ one-north.
Also, there is a strong workforce of approximately 50,000 serving at Science Parks 1 and 2, the National University of Singapore (NUS), and the National University Hospital (NUH).