The cooling measures announced by the government on 5 July threw the residential market into a frenzy. Within a span of five hours, over 1,000 units were sold from three new projects as buyers rushed to beat the midnight deadline to avoid paying the new higher Additional Buyer’s Stamp Duty (ABSD) rates.
The 1,000 units came from three projects that were launched that night: over 500 units from Riverfront Residences in Hougang, around 300 units from Park Colonial at Potong Pasir and some 200 units from Stirling Residences in Queenstown. For the rest of the quarter, response to new launches was patchy as potential home buyers weigh affordability with opportunity cost.
The residential price index edged up by a mere 0.5% q-o-q, a far cry from rises of 3.4% in Q2 and 3.9% in Q1. This moderate price increase shows that the key objective of the cooling measures, which is to achieve a more gradual but sustainable price growth, has been met.
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