House prices could have risen in the past year. But that doesn’t mean you won’t find a bargain. Among the new launch condos with an approaching ABSD deadline, we’ve narrowed down a few that we think developers could do an emergency sale.
How the ABSD can potentially lead to condominium discounts
The Additional Buyer’s Stamp Duty (ABSD) is a stamp duty that owners (other than Singaporeans with their first property) must pay when buying a property in Singapore. Likewise, property developers must pay ABSD to property developers if they acquire land through state property sales or en bloc for the construction of housing developments.
Before July 6, 2018, developers were given 15 percent ABSD for developments of five or more units, which can be waived if they meet certain criteria. This includes the sale of all units within five years of acquiring the site.
However, as of July 6, 2018, the ABSD will be increased to 30 percent, of which 25 percent will be refundable if they meet the conditions including the five-year sale period.
Due to the pandemic, the government has decided to stop locations on or before Jan.
But regardless of size and deadline extension, developers will still have to pay the full ABSD if they don’t sell all of the units.
When there are only a small number of unsold units left, discounts are usually given to offset their unsold units. And that’s what the developer of 38 Jervois did last year. With only 16 units left, they gave a 13 to 24 percent discount to sell within three days.
Bringing new condos to market with discount potential as they near their ABSD deadline
With that, we’ve narrowed down some new condos that are approaching their ABSD dates in 2021 and 2022 that are more likely to have discounts.
Note that while the numbers are correct at the time of writing, they can change over time as more units are sold.
1. 8 the hole
TOP: 2021
Estimated ABSD Sale Deadline: 2021
Number of units: 44
Unsold units at the time of writing: Jan.
Sales Percentage: 84.1 percent
The Orchard site was bought en bloc back in 2016, and with only seven units left unsold, we expect an emergency sale as the deadline is getting closer.
Nestled on Emerald Hill, 8 Hullet is within walking distance of the Somerset MRT and a few minutes’ drive from the CBD. It’s perfect for those who want to live and work in the Orchard and the CBD.
2. 3 cuscades
TOP: 2021
Estimated ABSD Sale Deadline: 2021
Number of units: 96
Unsold units at the time of writing: Aug.
Sale Percentage: 91.7 percent
Another location in Orchard that was sold en bloc in 2016 is now home to 3 Cuscaden. The property was sold at about the same time as Location 8 Hullet, so the deadline is getting closer. So we won’t be surprised if there might be some discounts to sell the remaining units.
Located near Orchard Boulevard, it’s also one of the new starting condos within walking distance of the new Thomson-East Coast Line.
ALSO READ: 10 Cheapest Double Key Condos in 2021
3. JadeScape
ABOVE: 2023
Estimated ABSD Sale Deadline: 2021
Number of units: 1206
Unsold units at the time of writing: Jan.
Sale Percentage: 97.8 percent
Another new condo that we think will have a distressed sale soon is JadeScape. While it won’t reach the TOP until 2023, the former site was bought en bloc by Shunfu Ville, a privatized HUDC, in 2016.
If you want to avoid the hustle and bustle of the city and prefer a spot in the OCR, this might be the apartment. Its Bishan location also means it is close to popular schools such as the Raffles Institution, Raffles Girls’ School, and Catholic High School.
ALSO READ: 6 Unique New Condo Layouts For Those Looking For Something Different
4. Treasure at Tampines
ABOVE: 2023
Estimated ABSD Sale Deadline: 2022
Number of units: 2203
Unsold units at the time of writing: 151
Sales Percentage: 93.1 percent
Treasure at Tampines (or rather, its location) has been making waves since 2017. At the time, the former Tampines Court site, a former HUDC, had its highest total contract in a decade.
It is currently the largest condominium development in Singapore. Given the size of the project, we’re not surprised if the developer starts giving discounts for running out of stocks. That is, if it is not sold out by the ABSD date.
If you’ve always wanted to live in the east this apartment should be checked out.
5. Riverside Residences
TOP: 2024
Estimated ABSD Sale Deadline: 2022
Number of units: 1472
Unsold units at the time of writing: Jan.
Sale Percentage: 98.0 percent
With the former HUDC location sold en bloc in 2017, Riverfront Residences is another new opening apartment with an ABSD deadline until 2022.
The new condominium is located near the heart of Hougang and overlooks the Serangoon River. In addition, it has 21 country houses – perfect for those who have always wanted to live on a country lot.
ALSO READ: 5 Best Selling Newly Introduced Condos of Second Quarter 2021
6. Komo Park
ABOVE: 2023
Estimated ABSD Sale Deadline: 2022
Number of units: 276
Unsold units at the time of writing: 100
Sale Percentage: 63.8 percent
Parc Komo is located on the former site of the Changi Garden, which was sold en bloc in 2017. Compared to the other new launch condos listed here, it does not (yet) have a high percentage of units sold. At the same time, we believe this new condo has fire sale potential for the simple reason that it is in a remote location compared to others.
Located near Changi Airport and Changi Prison, the closest MRT stations are Tampines East MRT and Upper Changi, which are not even within walking distance. However, Parc Komo is a mixed-use property development with commercial retail outlets right on residents’ doorsteps.
However, if you’ve always wanted some quiet and don’t mind the location, consider Parc Komo.
frequently asked Questions
How do you find discounts on condominiums?
You can find condo discounts at real estate auctions and new condos that are nearing their ABSD deadlines.
What is a real estate auction?
It occurs when a property is put up for bid and sold to the highest bidder. For example, a property can be seized by the bank and auctioned if the owner defaults on the home loan.
ALSO READ: 6 Upcoming Luxury Condos In 2021
What is the ABSD deadline?
It refers to the five-year period that developers are subject to home renovation from the time they acquire a plot of land or property. During this time, they must complete the development and sale of the residential property so that they do not have to pay the full developer ABSD of 30 percent.
This article was first published in 99.co
