With deadlines looming for a number of residential projects launched in last 5 years, buyers and investors may do well to keep a lookout for potential deals. Though developments which have a considerably large number of unsold units may not drop prices drastically, they may be seeking out buyers who are willing to take on bulk sales.
Foreign developers are required to sell all their units within 2 years of obtaining a Temporary Occupation Permit (TOP). That, coupled with the Additional Buyers’ Stamp Duty (ABSD) and the increased number of new units, the market has been a little shaky. Extension charges, pro-rated according to the number of unsold units, will be levied beyond the deadline. Some of the charges can be rather hefty, with $38.2 million at Nouvel 18 and $22 million at The Interlace.
Photo: The Trilinq
Some of the other properties potentially also facing extension charges include D’Leedon, Goodwood Residence, TwentyOne Anguillia Park and iLiv@Grange. At The Trilinq in Clementi, prices have fallen from $1,545 psf when it first launched, to $1,359 psf. Though property experts are not expecting too much of a price-tweak, the increasing amount of unsold stock in the market may push developers to consider alternative means of cutting down on losses. It looks like 2016 could continue to be the buyers’ market.