SINGAPORE— A buyer from China reportedly purchased a duplex penthouse unit at Klimt Cairnhill luxury condominium for close to S$30 million.
The penthouse, which costs around S$5,309 per square foot, spans the top two floors of the 36-story condo and has five en suite bedrooms, two study rooms, and a living room balcony with a small jacuzzi, according to the Business Times (BT).
The option to purchase was believed to be granted in mid-February, before the new buyer’s stamp duty rate hike was announced in the budget on February 14th.
Deputy Prime Minister Lawrence Wong announced in his Budget 2023 speech that the buyer’s stamp duty rate for residential and non-residential properties of higher value will be increased from February 15th, 2023.
For properties valued at more than S$3 million, the tax rate will be 6%, and for homes valued between S$1.5 million and S$3 million, the tax rate will be 5%, up from the current rate of 4%.
Wealthy Chinese investors driving demand for prime private homes in Singapore
Foreign buyers, particularly wealthy Chinese investors, are reportedly driving demand for prime private homes in Singapore. The Klimt Cairnhill project has sold 35 of its 138 units, with a simplex penthouse selling for S$26 million in November 2021.
In January 2023, foreigners purchased 57 units, a 58.3% increase from the previous month, and of the 17 units sold at Klimt Cairnhill in January, 14 were purchased by foreigners.
Huttons Asia’s senior director for research, Mr. Lee Sze Teck, told CNA that the return of super-wealthy Chinese property buyers to Singapore, due to China’s relaxation of border controls, is driving demand for prime private homes. Lee stated that super-wealthy Chinese buyers were behind some of the purchases in Klimt Cairnhill in January, pushing the project to become the third-bestselling project that month.
One reason why the Chinese were interested in Klimt Cairnhill was the availability of large units, which were more than 2,000 sq ft. Lee expects that the return of super-wealthy Chinese investors will continue to drive demand for prime private homes in Singapore.
China’s super-rich move their wealth to Singapore
AFP had reported earlier that Singapore is seeing an influx of ultra-wealthy families from China looking to protect their wealth from a Communist Party that increasingly views them with suspicion.
The presence of recent Chinese arrivals is keenly felt in Singapore, some are relocating to luxury homes with waterfront views on Sentosa Island, which also houses a theme park, a casino, and a prestigious golf club.