The recent property cooling measures have affected the sales of construction group Tiong Seng's 2 projects located in Balmoral and Orchard, due to the higher additional buyer's stamp duty rates for foreign buyers.
Even so, the mainboard-listed company is optimistic that the resumption of international travel, and location of the 2 properties - Sloane Residences and Cairnhill 16 - which are close to good schools and amenities may encourage more sales.
Tiong Seng on Sunday (Apr 17) responded to questions from the Securities Investors Association (Singapore) (Sias) on its annual report for the financial year ended Dec 31, 2021.
Sias had asked how the government's cooling measures have affected the construction group's Singapore developments.
In its reply, Tiong Seng said the price and transaction volume of non-landed private homes have declined in the first quarter of the year due to the latest measures.
"In particular, homes in the core central region, where are 2 projects are located, were hardest hit by the cooling measures with higher additional buyer's stamp duty rates for foreign buyers," said Tiong Seng.
Sloane Residences is a freehold 12-storey condominium located on Balmoral Road in District 10. Tiong Seng said 20 out of a total of 52 units have been sold. It expects the sales of the remaining units to pick up with units ready for buyers to move in when the project is completed in mid-2022.
As for Cairnhill 16, a 15-storey freehold condominium located on 16 Cairnhill Rise in District 9, none of the thirty-nine units have been sold. Sales and marketing started early this year, and the project is targeted for second-half 2023 completion.
Sias also asked Tiong Seng to elaborate on the S$20.2 million impairment loss arising from its property development business in China, and specifically, to give a breakdown of the S$17.5 million in allowance for diminution in value of development properties by the different projects.
Tiong Seng said the S$17.5 million arose from undeveloped land in its Equinox project located in Tianjin.
Shares of Tiong Seng closed flat at S$0.139 on Apr 14 before the announcement.
Credit: Business Times