Prices of resale condos in Marine Parade hold steady despite ABSD
By EdgeProp Singapore
/ EdgeProp Singapore |
Prices of resale condos in Marine Parade continue to hold steady despite higher Additional Buyer’s Stamp Duty (ABSD) rates from last year’s property cooling measures.
This can be observed in the continuous uptrend of average transacted prices for non-landed private residential properties within the planning area despite the sharp decline in transaction volume.
Based on URA data, transaction volume in the area fell by 54% in 2018 from the previous year. In comparison, average transacted prices for private homes in the area rose by 3% within the same period.
Source: Edgeprop.sg, URA
The cooling measures, which included higher ABSD rates and tighter loan-to-value (LTV) limits, was intended to curb the exuberance in the housing market.
Effective July 6, 2018, Singaporeans buying a second residential property must pay an additional 12% ABSD on the property value, up from the previous 7%. Permanent residents (PRs) buying a second home now pay 15% compared to the previous 10%. Meanwhile, foreign buyers without permanent residency status must fork out 20%, instead of 15%.
The measures came as a shock, arriving just as property developers have replenished their land banks amid a flurry of en bloc activities that occured throughout 2017 and into the first half of 2018 in anticipation of blockbuster sales.
Within the Marine Parade area itself, there were seven en bloc transactions that took place between July 2017 and July 2018.
Source: EdgeProp.sg, URA
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The slew of en bloc activities in the area was thought to have catapulted prices of resale condos to new heights. For instance, resale units in the Amber Road-Amber Gardens neighbourhood started to breach the $2,000 psf threshold circa 2017, right at the height of the collective sale fever.
The uplift in prices was attributed to the en bloc beneficiaries of the former Amber Park, whose owners reportedly received between $4.376 million and $8.3 million each.
While buying activity has come to a slowdown following the implementation of higher ABSD rates, the resilience of home prices in the area is an indication that homebuyers and investors continue to see properties within Marine Parade as an attractive store for value.
Given the area's proximity to the East Coast Park, reputable schools and some of Singapore's best known eateries, it is likely that Marine Parade will continue to be a choice housing location for homebuyers and investors, particularly for families with young children or those seeking an active lifestyle with various outdoor recreational opportunities.
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