The first 9 months of 2016 have seen an encouraging uptrend in the pickup rate of luxury homes, thanks to softer prices over the past 18 months. Both new launches and secondary market have registered a year-on-year increase of close to 10%, excluding Executive Condo (EC).
In short, high-end private residential market has been boosted by falling prices that has been brought about by the barrage of cooling measures in recent years.
As of mid-Dec, the central district recorded an impressive more than 2,600 units transacted, which translates to close to 43% increase for the same period in 2015.
One of the main contributing factors was the re-introduction of Deferred Payment Scheme (DPS) into this segment, which attracted many cash-rich investors. Leedon Residence and Twin Peaks are examples of new condo launches that dangle the DPS carrot which has paid off handsomely. Buyers only pay for the 20% downpayment plus stamp duty. No payments are needed for the subsequent 2 to 3 years. These units have obtained their TOP, and can thus be rented out almost immediately to enjoy rental incomes. Simply put, there would be constant rental incomes for 2 to 3 years without any cash outlay.
There are speculations that more DPS will be offered by developers to boost their nearing-TOP new condo launch in the coming year. So despite the generally lukewarm economy outlook, 2017 may well turn out to be an interesting year for the private condo in the Singapore property market!
Luxury New Launch In Prime Area:
26 Newton | Liv On Wilkie | The Rise @ Oxley Residences | Sophia Hills | Mon Jervois | Pollen & Bleu | Robin Residences | Robin Suites | One Balmoral | Three Balmoral | Leedon Residence | The Peak @ Cairnhill I | Gramercy Park |