Unprecedented Demand in a Tight Market

Singapore has witnessed an astonishing response to its first mass-market private residential project since new government curbs were imposed. The LyndenWoods development, which launched its booking on a Saturday, saw an impressive 324 out of 343 units sold — a staggering 94% sell-out rate in just one day! This remarkable achievement by CapitaLand Development demonstrates a keen interest in affordable housing, as homes were priced lower than usual.

Curbs No Match for Buyer Enthusiasm

Just days before the launch, Singapore introduced stringent measures aimed at curbing speculation in the property market. These new regulations require owners to hold onto their properties for a minimum of four years to avoid incurring a seller’s tax, an increase from the previous three years, with heightened penalties for those who choose to flip their properties sooner.

Attractive Pricing Lures a Diverse Buyer Pool

Sold at an average price of S$2,450 (approximately US$1,914) per square foot, LyndenWoods attracted a diverse array of buyers, including professionals, couples, and families drawn by its promising long-term investment potential. Notably, these prices were below the median rates for comparable units across the city, further affirming the development’s competitive edge.

Reaffirming the Market’s Resilience

The enthusiastic sales at LyndenWoods may also indicate a shift in sentiment among buyers, who seem unfazed by the recent tax changes. Mark Yip, CEO of Huttons Asia Pte, noted that the volume of interest was remarkable, with over two prospective buyers per unit registered for the ballot.

Upcoming Projects and Market Pulse

While private home prices have risen consistently over the past three quarters, the pace has slowed. This is especially evident in the high-end sector of Singapore’s CBD, where new regulations adversely affected interest from buyers. Meanwhile, other projects, such as the W Residences Marina View, are gearing up for their launches amid a cautious yet curious market.

As more developments hit the market in the upcoming weeks, property enthusiasts and analysts alike will be keeping a close watch on buyer sentiment. The opening weekends of these private projects are critical indicators of the ongoing health and dynamism of Singapore's real estate market.