Bulk hopes will continue ongoing tenders despite new property cooling measures

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SINGAPORE: Projects that hope to be bulk sold are moving forward with their ongoing tenders, despite the potential fallout from new property cooling measures.

The measures, announced last week, should take the breath away of the residential collective selling market, analysts previously said.

This is due to a 35% Additional Stamp Duty (ABSD) that developers must pay if they fail to complete and sell all units within five years – which analysts say will make developers more careful with their land offers.

Nonetheless, marketers CNA spoke to said their clients’ current tenders will continue without any changes.

PropNex Realty, which markets the sale of Lakepoint Condominium, said the development’s collective tender will close at 2 p.m. on December 22, as scheduled.

“We have no further comments to add at this point,” he said in response to questions.

Cushman & Wakefield, marketing agent for Dublin Lodge freehold land development and the Sixth Avenue Center mixed-use site, said ongoing tenders for the two will also continue. The calls for tenders will close on January 4 and 6 respectively.

“In general, the committees we work with have been surprised by this new round of chilling measures, despite the grim prospect hovering over everyone’s heads for about a month,” the company said. at CNA.

“The cooling measures were somewhat expected; it was just a matter of severity and when they would be implemented.

But he added that the prices currently charged by the projects – S $ 65 million for Dublin Lodge and S $ 86 million for the Sixth Avenue Center – are “very reasonable”.

“Our current asking prices are still roughly at pre-COVID market levels, as they were set in 2019,” the company said, adding that they “have yet to take into account the recent acceleration of the Marlet”.

Colliers Singapore, which is handling the sale of the Baode building and a site at Hillview Terrace, said tenders for these will continue and “decisions will be made on the basis of the bids.” Their offers close on January 18 and 20, respectively.

Savills Singapore said the tender for the Beaumont and Tanglin shopping centers will also close on January 20 and February 22, respectively, as scheduled.

NON-IMPACTED COMMERCIAL PROJECTS BY ABSD

Developments zoned for commercial use, such as Sixth Avenue Center and Tanglin Shopping Center, are exempt from ABSD tariffs.

Coupled with the higher risks to residential development, some attention could be directed to commercial and industrial markets, analysts said.

Savills investment sales and capital markets general manager Jeremy Lake noted that developers’ response to the commercialization of the Tanglin Mall has been “very positive” even after the announcement of the cooling measures.

Sultan Plaza, located near Kampong Glam, also went on collective sale on December 22 for a price of S $ 360 million.

Marketing agent Teakhwa Real Estate said he expects high interest due to the “reasonable asking price and fair amount” of the project, as well as its downtown location.

“With strong sales from neighboring developments such as The M, Midtown Modern and Midtown Bay, we expect stiff competition from developers,” the company said. The call for tenders will close on February 10.

Another nearby site for collective sale is the iconic Golden Mile Complex, whose bidding ends on February 28. Its marketing agent, Edmund Tie, declined to comment.


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