{"id":65322,"date":"2023-05-09T17:46:38","date_gmt":"2023-05-09T09:46:38","guid":{"rendered":"https:\/\/www.99.co\/singapore\/insider\/?p=65322"},"modified":"2026-03-27T16:37:17","modified_gmt":"2026-03-27T08:37:17","slug":"new-launch-cooling-measures","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/new-launch-cooling-measures\/","title":{"rendered":"Why some new launches will still do well despite the latest cooling measures"},"content":{"rendered":"
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The latest <\/span>cooling measures on 27 April 2023<\/span><\/a> had the biggest impact on foreign buyers, who saw their <\/span>ABSD (additional buyer\u2019s stamp duty)<\/span><\/a> rates double, from 30% to 60%. Some new launch condos, like <\/span>Newport Residences<\/span><\/a>, postponed their launch after the cooling measures were imposed.\u00a0<\/span><\/p>\n

But <\/span>Blossoms by the Park<\/span><\/a>, another <\/span>new launch condo<\/span><\/a>, decided to proceed with its sales launch despite the cooling measures. And it seems like the developer\u2019s decision paid off, as it sold almost 75% of its units (205 out of 275 units), which is also the highest take-up rate for new launches this year.<\/span><\/p>\n

We analyse why some new launch condos are still most likely to do well despite the latest cooling measures. (We\u2019ll use multiple examples from Blossoms by the Park and other new launches).\u00a0<\/span><\/p>\n

Profile of target buyers<\/h2>\n

The cooling measures aimed to dissuade local and foreign investment and prioritise housing for owner-occupiers. Hence, if a new launch is targeted at first-time Singaporean buyers and homeowners, it\u2019s unlikely that its sales would be affected by the cooling measures.\u00a0<\/span><\/p>\n

\"blossoms<\/a>
4-bedroom showflat unit at Blossoms by the Park<\/figcaption><\/figure>\n

This was the case for Blossoms by the Park<\/a>, where about 96% of buyers were Singaporeans and permanent residents (according to the developer). Mark Yip, CEO of Huttons Asia, attributes the positive sales to the count of properties owned by buyers, \u201cHuttons estimated that more t<\/span>han 90% were first-time buyers hence unaffected by the cooling measures.\u201d\u00a0<\/span><\/p>\n

The profile of target buyers of new launches is also tied to its location. On Blossoms by the Park\u2019s sales, Marcus Chu, CEO of ERA Realty Network, says,<\/span> \u201cTypically, more than 80% of the homebuyers in the RCR are Singaporeans; and they may not be affected or too affected by the recent increase in ABSD rates.\u201d<\/span><\/p>\n

Based on caveats from URA Realis in Q1 of 2023, the proportion of foreign buyers in the CCR was 15.6% compared to 5.7% in the RCR and 2.4% in the OCR.\u00a0<\/span><\/p>\n

This might explain why Newport Residences, located in the CCR, decided to hold off on its launch. But we foresee that new launches in the OCR and RCR will proceed with their previews as planned.\u00a0<\/span><\/p>\n