9 of 10 Watertown buyers are Singaporean
Jan 26, 2012
Sheena Chua
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A week after its launch, the Punggol condominium, Watertown, confirmed an overwhelming share of local buyers, no doubt an after-effect of December’s additional buyer’s stamp duty.
(One of the many reasons why local buyers flood to Watertown: Punggol MRT Station. Image courtesy of Terence Ong.)
Far East Organization, one of the project’s developers, told The Straits Times that Singaporean buyers accounted for over 90% of the 550 units the joint venture condo moved so far. This is up from the average 80% share that locals usually made up at the firm’s suburban launches last year. These projects include The Tennery in Bukit Panjang, The Greenwich in Seletar Hills and euHabitat in Jalan Eunos.
When the firm previewed The Hillier—next to the upcoming Hillview MRT Station—after the 10% buyer’s stamp duty introduction in December last year, Singaporeans still comprised about 80% of buyers.
A Straits Times source suggested that the strong demand from foreign and permanent resident (PR) buyers could have remained because of the project’s close proximity to Bukit Timah. Bukit Timah is home to reputable schools and well-heeled residents.
However, the government announced that from December 8 last year, foreign buyers had to fork out an extra 10% buyer’s stamp duty for any residential property purchased in Singapore. While PRs are not affected by the 10% additional buyer’s stamp duty, they—and their Singaporean counterparts—have to foot a 3% additional buyer’s stamp duty on the second and subsequent residential properties they buy.
Repelling foreign buyers is one thing, but attracting local buyers is another.
Commenting on how Watertown has managed to move so many units in such a short time, Far East chief operating officer of property sales Chia Boon Kuah told The Straits Times that it was all about selling points. “It's a one-of-its-kind mixed use development that offers waterfront living integrated with a mall and the Punggol MRT Station.”
According to Chia, such mixed-use developments tend to be appealing to buyers.
 (Watertown show gallery taken on 26 Jan 2012)
He added that the joint venture also allowed all parties to leverage on each other’s unique strength. Watertown is jointly developed by Far East (widely considered a property giant), Frasers Centrepoint (whose expertise lie in retail mall operations) and Sekisui House (a Japanese firm with green construction technology know-how).
So if foreign buyers are not snapping up Watertown homes, which Singaporeans are?
According to The Straits Times, around half of the condo’s buyers hail from neighbouring District 19 and its constituent Sengkang, Hougang, Punggol and Serangoon estates. Two-thirds of buyers reside in public housing flats.
“Interestingly, some of our buyers are purchasing the units at Watertown for their weekend or holiday homes and also for retirement. Many are also buying for their children as well,” said Chia.
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Related Categories: General, Private Residential
Tags: ABSD, buyer's stamp duty, condominiums, condominiums in Singapore, cooling measures, effects, euHabitat, Far East Organization , Foreign buyers, Frasers Centrepoint, local buyers, mixed use development, mixed-use development, new condo, new development, new launch, Punggol, Punggol MRT, Sekisui House, Singapore private housing market, stamp duty, The Greenwich, The Hillier, The Tennery, Waterfront condo Singapore, Watertown
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