Chart of the Day: Property buying interest renewed

The high-end market has grown to accept the Additional Buyer’s Stamp Duty as part of transaction costs, says Maybank Kim Eng.

Maybank Kim Eng noted:

Not all doom and gloom. The introduction of the Additional Buyer’s Stamp Duty in December last year sent the high-end market into a stalemate. Recently, new home sales in the Core Central Region have shown initial signs of renewed interest, with 403 units sold in 2Q12, compared with 129 units in the previous quarter.

High-end segment piquing interest. We believe the market has grown to accept the ABSD as part of transaction costs. We expect buying interest to resume, albeit not to pre-GFC levels, as the investment climate in Singapore remains favourable, and the lack of alternative destinations in the region which offer such high-quality luxury products, especially on freehold tenure.