Sentosa Cove home sales down after stiffer ABSD rates

Sales of private residential properties in Sentosa Cove have fallen substantially this year, following stiffer Additional Buyer’s Stamp Duty (ABSD) rates implemented in January this year.

Property agency PropNex said industry data showed that 42 apartments and landed homes were sold in the first nine months of this year.

This is compared with 98 units transacted in the whole of last year.

The revised ABSD requires foreigners to pay an extra tax of 15 per cent on the purchase of any residential property in Singapore.

Analysts said it has deterred some investors, such as high net-worth individuals, from buying homes in Sentosa.

Despite the weak demand, market watchers said home prices in Sentosa Cove have been relatively stable.

Mohd Ismail, chief executive officer of PropNex, said: “In fact, the prices of today are more than 2011, and if you compare last year’s to today’s prices, the prices have only dipped marginally by 1 to 2 per cent.

“I think this is because a lot of people who have bought properties in Sentosa have the holding power, and with such low interest rate environment and good rental yield, people have no interest to sell.”

Source : Channel NewsAsia – 24 Oct 2013

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