Contrary to popular opinion, some foreigners will shell out 60% ABSD for a freehold condo in Singapore’s prime districts. Among the first to do so is Indonesian billionaire Dewi Kam, with a net worth estimated by Forbes at US$4.2 billion. The self-made billionaire is said to be the 21st richest in Indonesia, and her wealth comes from her minority stake in the Indonesian-listed coal mining company Bayan Resources.
According to a caveat lodged on May 18 and a property title search, Kam purchased a 4,112 sq ft, four-bedroom condominium unit on the 24th floor of Scotts Highpark for $12.68 million ($3,084 psf). As a foreign national, Kam would have paid 6% in buyer’s stamp duty ($760,800) as buyer’s stamp duty (BSD) for all private residential properties above $3 million was raised from 4% to 6% from February 15, 2023.
She is also likely to be hit by the 60% additional buyer’s stamp duty (ABSD), which doubled from 30% with effect from April 27, 2023, in the latest round of property cooling measures. This is because the contract date (option date) reflected in the property title was May 18, 2023, the exact date the caveat was lodged.
The transaction date is beyond the transition period, which ended on May 17. During the transition period, for options to purchase granted to buyers on or before April 26 and exercised within 21 days (i.e. on or before May 17), the old ABSD rate of 30% applied. However, there is no further extension beyond May 17 for the ABSD, according to the Inland Revenue Authority of Singapore (IRAS).
Hence, the ABSD that Kam paid is likely to be $7.608 million. This brings her total purchase price, including stamp duties (ABSD and BSD), to $21.0488 million.
Kam’s purchase also marks the highest psf price recorded in the 73-unit Scotts HighPark since the project was launched in August 2006. The freehold condominium project was developed by CapitaLand Development on the site of the former Melia at Scotts, which it had purchased for $165 million in the mid-1990s.
Scotts HighPark is a 27-storey residential tower between Goldbell Towers and Sheraton Towers Singapore Hotel on Scotts Road in prime District 9. It’s a short walk to the Newton MRT Interchange station for the Downtown and North-South Lines.
The luxury development has a 19-storey and 27-storey tower. The first tower of 19 storeys has a mix of two- and three-bedroom apartments ranging from 1,141 to 2,110 sq ft. The taller 27-storey tower has four-bedroom units from 3,466 sq ft to 4,112 sq ft and penthouses, with the largest, a five-bedroom duplex of 6,545 sq ft.
Article extracted from edgeprop.sg. Images courtesy of the internet.