The ABSD rates for buying a second or subsequent home are 20-30 per cent for a local and 30-35 per cent for a PR. A non-PR homebuyer pays 60 per cent ABSD.

ABSD does not apply to a local buying a first home, while a PR purchasing a first home pays 5 per cent ABSD.

Indeed, with a private housing market now dominated by Singaporeans buying their first homes, some new condo launches in the suburbs and city fringe have flourished. Key selling points for projects that have seen strong take-up include proximity to MRT stations, retail amenities and reputable schools.

Potential buyers might do well to pay greater attention to CBD homes. After all, the Urban Redevelopment Authority has in recent years been moving away from a downtown dominated by offices, to one which is more mixed use and lively after office hours.

Today, a home dweller in the CBD can easily access public transport, shops, F&B outlets, hawker centres, parks, cultural amenities, conserved shophouses and so forth.

W Residences Marina View

Amid a flurry of new condo launches, might a project in the vicinity of Marina Bay – the centrepiece of Singapore’s urban transformation – such as W Residences Marina View – Singapore be a dark horse that shines?

The developer IOI Properties is part of Kuala Lumpur-listed IOI group, one of Malaysia’s biggest conglomerates, and has been steadily growing its Singapore footprint. In the Marina Bay area, it also built IOI Central Boulevard Towers, a mixed-use development with two Grade-A office towers and a seven-storey retail podium. 

The 99-year leasehold luxury W branded residence project is now in the early phase of private previews, with “special preview prices” from just over S$3,200 psf for a limited number of units.

In perspective, two upcoming new condo launches in the River Valley area have prices that are not far off the above price. Prices for Wing Tai Holdings’ River Green start from S$2,846 psf, while prices for Allgreen Properties’ Promenade Peak could be around S$3,000 psf.

The 683-unit W Residences Marina View, with easy access to the Shenton Way MRT station on the Thomson-East Coast Line, has 171 one-bedders, 310 two-bedders, 103 three-bedders, 32 four-bedders, 64 five-bedders, and three penthouses. Part of a 51-storey mixed-use development, the homes will be perched atop the new 360-room five-star W Singapore – Marina View hotel. 

CBD housing demand

There are first-time local private homebuyers who buy mainly for investment, such as a person whose spouse owns their owner-occupied home and a young adult living with parents.

For this profile of buyers, a one-bedder or two-bedder at W Residences Marina View could make sense.

Rental demand for CBD homes is supported by easy access to Grade A CBD offices, which are the option of choice for many leading businesses across diverse sectors as well as the increasing liveability of the CBD.

An added edge for a landlord of a unit at W Residences Marina View could come from the residences being operated by Marriott International. The project’s residents will have access a high level of services for their lifestyle needs.

In addition, smaller configuration condo homes in the CBD, especially in developments that are well crafted and have great common facilities, may attract owner-occupiers who are high-earning singles or couples without children.

Meanwhile, some owner-occupiers might be drawn to living in large premium condo homes in the Marina Bay vicinity and other parts of the CBD.

Think of wealthy PR households who may not be able to buy landed housing here and need not live close to sought-after local schools. Or older well-heeled local couples whose children have grown up and moved out from their home, who could be moving from say a landed home to a large format centrally-located condo unit with ample space for entertainment and hobbies.

In short, a four-bedroom unit of about 2,250 square feet (sq ft) or a five-bedder of about 2,809 sq ft at W Residences Marina View might appeal to affluent homebuyers looking for a high quality abode to live in.

Sure, CBD living is not everyone’s cup of tea. And even as the CBD transforms into a more vibrant live, work and play destination, its undoubted strength is as a host of premier work spaces for leading businesses.

Nonetheless, don’t underestimate the appeal of homes in the CBD. The unique selling points of such homes include their easy access to luxury shopping at The Shoppes at Marina Bay Sands, top attractions such as Gardens by the Bay and Marina Bay Sands, great recreational spaces like Marina Barrage as well as leading arts venues and museums.

Moreover, a CBD that is quieter at nights and on weekends relative to the bustle of weekday mornings and afternoons could be a plus for residential dwellers who are largely at home during weekday nights and weekends.

Ultimately, in a resilient and steady Singapore private housing market, betting on a dark horse in CBD homes may deliver relative outperformance in the long run.