CDL to launch The Myst; impact of cooling measures on residential portfolio remains manageable

Singapore-listed property group City Developments Limited (CDL) announced on 19 May that it will launch The Myst, a 408-unit, 99-year leasehold project along Upper Bukit Timah Road, in 2023. The private condominium is less than a five-minute walk from Cashew MRT Station on the Downtown Line.

Meanwhile, CDL has rescheduled the preview for Newport Residences, which was originally slated for 29 April. The 246-unit, freehold Newport Residences is part of an integrated development comprising offices, serviced apartments, F&B, and retail. It is a redevelopment of the former commercial building Fuji Xerox Towers, located in Tanjong Pagar in District 2 within the Core Central Region (CCR).

CDL postponed the preview following the implementation of the latest round of property cooling measures that recently came into effect. The Additional Buyer's Stamp Duty (ABSD) for foreigners purchasing residential properties was doubled from 30% to 60%. For Singapore Citizens buying their second and third or subsequent residential property, the ABSD was raised to 20% and 30% respectively, while for Singapore Permanent Residents (PRs), it increased to 30% and 35% respectively.

'Minimal impact' on mass-market and mid-tier segments

In the near term, CDL expects the latest cooling measures to impact projects with a higher proportion of foreign demand, typically high-end/luxury properties in prime districts or the CCR.

The group expects "minimal impact" on the mass-market and mid-tier segments where the majority of buyers are locals and PRs, as demonstrated by EL Development's Blossoms By The Park at one-north, which sold 75% of its 275 units on launch day at an average price of $2,423 psf. Hoi Hup Realty and Sunway Developments launched the 816-unit, freehold The Continuum the following weekend, moving 211 units (26%) at an average price of $2,730 psf. Meanwhile, the 732-unit The Reserve Residences, a joint venture between Far East Organization and Sino Group, is slated to launch on 27 May.

The impact of the cooling measures on CDL's residential portfolio is "manageable", as the group had already sold 88% of its launched inventory in Singapore as of April.