The implementation of property cooling measures in Singapore prompted Tee Land Ltd. to back out from exercising an option to buy a freehold residential site in the city-state, while also causing extensions in two more ongoing en bloc sales tenders.
Under an agreement signed in June, Tee Land was purchasing the land plot at 338-364 Upper East Coast Rd. for S$60 million. However, it said July 26 that will forfeit a 1% deposit it paid for the property as it adopts "a more prudent and circumspect approach towards new projects" for the meantime, in light of the new rules.
The listed residential developer added that it made the decision after considering market sentiments that arose from the government's raising of additional buyer's stamp duty and tightening of loan-to-value limits in early July.
Meanwhile, Huttons Asia extended the deadlines for the respective tender processes for the Katong Plaza and the Fortune Park residential properties to Sept. 11 and Sept. 14, The (Singapore) Business Times reported.
True to its previous pronouncement, the marketing agent pushed back the sites' collective sales because of the new measures, which mainly affects residential properties, Angela Lim, Huttons Asia's deputy head of investment sales, said in the report.
Katong Plaza's tender was launched June 7 with a S$188 million reserve price and was scheduled to close July 16. Fortune Park's S$126 million collective sale, on the other hand, was originally meant to run until Aug. 17 from its July 12 kick-off, the July 26 report added.
As of July 26, US$1 was equivalent to S$1.36.