City Developments Ltd. (CDL), a Singapore-based property giant led by billionaire Kwek Leng Beng and family, has sold 20% of its luxury residential skyscraper, Union Square Residences, located near the Raffles Place central business district. Despite tepid demand in Singapore’s high-end property market, CDL managed to move 75 of the 366 units during its launch weekend, achieving an average price of S$3,200 ($2,400) per square foot.
The highlight of the sales was a five-bedroom Sky Suite on the 38th floor, which fetched S$9.3 million.
Sherman Kwek, CDL’s group CEO, expressed optimism, stating the sales reflect sustained interest in prime developments. “The encouraging take-up for Union Square Residences highlights the enduring value of a prime mixed-use development,” Kwek said.
However, market analysts caution that demand for high-end apartments is still recovering from the impact of property curbs implemented by Singapore’s government, particularly the Additional Buyers’ Stamp Duty (ABSD). This hefty 60% tax on foreign buyers has dampened investor enthusiasm for luxury properties.
Vijay Natarajan, an analyst at RHB Bank, noted, “While there are early signs of recovery due to healthy economic growth, the high ABSD rates continue to deter foreign and investor interest in high-end residential units.”
As Singapore’s economic growth remains robust, CDL’s sales performance at Union Square Residences may signal cautious optimism for the luxury property market. However, full recovery likely hinges on regulatory changes and sustained economic stability.
