The launch of Parc Rosewood condominium over the weekend saw 70 per cent of the 236 units that were offered being sold. But this is after developer Kensington Land decided to price the units at between 8 and 10 per cent lower than comparable transacted home prices in the same area.
Located close to Woodlands Regional Centre, prices were from about S$398,000 for a one-bedroom unit, S$568,000 for a two-bedroom unit and S$778,000 for three-bedroom units. This works out to be about S$925-S$998 psf.
Kensington Land (a joint venture between developers Fragrance Group and World Class Land) said the “very attractive price” is meant to offset any impact on sales from the recently-implemented additional buyers’ stamp duty.
The 670-unit Parc Rosewood is marketed by ERA Realty Network and its key executive officer Eugene Lim said that, based on recent transacted prices of comparable condominium units in the area, it could have been priced at between S$1,030-S$1,100 psf.
However, to ensure sales, the eventual selling price was reduced. “Developers who are realistic will recognise that this is the way to chalk up sales,” he added.
Mr Lim said the buyers were a mix of singles, young couples and PMEBs. “The market is not dead. Buyers are just more discerning now. They know there is more supply coming up and are looking for both pricing and facilities offered,” he said.
Mr Nicholas Mak, executive director, Research & Consultancy Department, SLP International Property Consultants, noted that the healthy sales at Parc Rosewood suggest that there is still latent demand for property.
“Home buyers are waiting for the right price to come to the market,” he added.
Over at the newly-launched 670-unit Tampines Trilliant executive condominium by Sim Lian Group, foot traffic through the showflat was equally brisk.
Mr Kuik Sing Beng, executive director of the Sim Lian Group, said there was a mix of first and second-time home-buyers visiting the showflat over the weekend.
Prices start from S$682,000 for a three-bedroom unit and from S$971,000 for a four-bedroom unit.
Sim Lian also gave updated sales figures for Parc Vera, with 50 per cent of its 452 units sold to date while the 882-unit Treasure Trove in Punggol Central is more than 80 per cent sold.
Monday, January 30, 2012
Sunday, January 29, 2012
Friday, January 27, 2012
En bloc market: R.I.P in 2012?
Several potential en bloc deals have been launched recently as homeowners in these developments attempt to capitalise on the current record-high residential property prices. However, I believe they are likely to be disappointed as this year’s outlook for the en bloc market looks pretty dim.
In a typical en bloc deal, homeowners of a residential building agree to sell their units collectively to an interested party, usually a property developer that will tear the building down and use the space for a new project. Last year, 49 en bloc deals worth S$3 billion were sealed, a huge jump from the 36 deals worth S$1.8 billion in 2010.
But these aggregate numbers mask certain underlying weaknesses. The en bloc deals last year were overwhelmingly dominated by small deals with an average size of only about S$60 million. The largest of these deals, Henry Park Apartments, was worth only S$176 million. In my view, this highlights property developers’ diminished risk appetite to embark on large en bloc deals that normally take a much longer time to turn around.
This year, though property developers still need to replenish their land banks, especially after seeing strong residential sales over the last two years, I believe they will be much more selective in their site purchases.
The series of residential property cooling measures the Government has introduced since September 2009 has heightened the negative outlook on the residential market. Couple this with Singapore’s slowing economic and population growth and the expected ramp-up of residential supply next year, and one begins to understand why property developers would seek to reduce inventory risk.
One way the developers can do so is by turning around property projects over a shorter period of time. This minimises the risk of holding on to land inventory that could potentially depreciate in value.
This urgency to turn around projects at a faster pace would also be boosted by the recently imposed Additional Buyer’s Stamp Duty (ABSD). The new rule applies not only to purchases of vacant residential land but also to en bloc properties for housing development. But if the property developer manages to redevelop and sell all the new units within five years of acquiring the site, it will not have to pay the ABSD.
Property projects based on en bloc deals generally take longer to turn around given the additional time required to take over the existing developments and demolish them. This is especially true of large en bloc deals, as the potentially greater number of redeveloped units for sale would make it harder for the developers to sell them all within five years and thus avoid paying the ABSD.
All this naturally puts en bloc deals at a disadvantage when compared to acquiring vacant plots through the Government Land Sales (GLS) programme. With the Government still offering near-record-high supply of land for residential use, property developers are likely to prefer to replenish their land banks through the GLS programme rather than through en bloc deals.
Thus, in the Year of the Dragon, it would be wise not to put too-high hopes for en bloc riches
In a typical en bloc deal, homeowners of a residential building agree to sell their units collectively to an interested party, usually a property developer that will tear the building down and use the space for a new project. Last year, 49 en bloc deals worth S$3 billion were sealed, a huge jump from the 36 deals worth S$1.8 billion in 2010.
But these aggregate numbers mask certain underlying weaknesses. The en bloc deals last year were overwhelmingly dominated by small deals with an average size of only about S$60 million. The largest of these deals, Henry Park Apartments, was worth only S$176 million. In my view, this highlights property developers’ diminished risk appetite to embark on large en bloc deals that normally take a much longer time to turn around.
This year, though property developers still need to replenish their land banks, especially after seeing strong residential sales over the last two years, I believe they will be much more selective in their site purchases.
The series of residential property cooling measures the Government has introduced since September 2009 has heightened the negative outlook on the residential market. Couple this with Singapore’s slowing economic and population growth and the expected ramp-up of residential supply next year, and one begins to understand why property developers would seek to reduce inventory risk.
One way the developers can do so is by turning around property projects over a shorter period of time. This minimises the risk of holding on to land inventory that could potentially depreciate in value.
This urgency to turn around projects at a faster pace would also be boosted by the recently imposed Additional Buyer’s Stamp Duty (ABSD). The new rule applies not only to purchases of vacant residential land but also to en bloc properties for housing development. But if the property developer manages to redevelop and sell all the new units within five years of acquiring the site, it will not have to pay the ABSD.
Property projects based on en bloc deals generally take longer to turn around given the additional time required to take over the existing developments and demolish them. This is especially true of large en bloc deals, as the potentially greater number of redeveloped units for sale would make it harder for the developers to sell them all within five years and thus avoid paying the ABSD.
All this naturally puts en bloc deals at a disadvantage when compared to acquiring vacant plots through the Government Land Sales (GLS) programme. With the Government still offering near-record-high supply of land for residential use, property developers are likely to prefer to replenish their land banks through the GLS programme rather than through en bloc deals.
Thus, in the Year of the Dragon, it would be wise not to put too-high hopes for en bloc riches
Wednesday, January 25, 2012
Buyer are still buying property after so many rounds of cooling measure kicks in
While the pace of transactions in the traditional prime districts of 9, 10 and 11 has slowed following the property cooling measures introduced by the government on Dec 8, that in the CBD area remains lively, especially for new apartment towers completed in 2011 such as One Shenton and The Clift. “It is quite interesting to see that the property prices in the CBD area are still holding up, at above $1,900 psf, considering the reaction towards the new cooling measures,” says Joelle Ng, group director of Huttons International. “While many are waiting for prices to drop before going back into the arena, it is quite unlikely to happen, especially for properties in the prime areas.”
Based on the latest caveats lodged and downloaded from URA Realis as at Jan 11, there were two transactions at One Shenton last month. The most recent transaction was the sub-sale of a 1,098 sq ft two-bedroom apartment on the 37th floor for $2.53 million ($2,300 psf).
Just one floor below, a 1,130 sq ft, two-bedroom unit changed hands for $2.6 million ($2,280 psf). The previous owner had bought it for $2.3 million ($2,021 psf) in August 2007, hence making a 12.8% gain.
Designed by world-renowned architect Carlos Ott, the twin-tower landmark project located on Shenton Way is built on a retail podium. There are 341 units of one to four bedroom apartments and penthouses in two towers of 42 and 50 storeys. The project is a redevelopment of City Developments Ltd (CDL)’s former Robina House commercial building. The developer currently has less than 20 units available for sale, mainly large three- and four-bedroom apartments on the high floors.
When One Shenton was launched in January 2007, the units were sold at an average price of $2,000 psf. The highest price achieved in the condominium so far was in June 2007, when a 1,894 sq ft four-bedroom unit changed hands for $5.2 million ($2,757 psf).
TANJONG PAGAR
Another new condo in the vicinity, the 312-unit The Clift, was launched in the middle of 2006, and the average price then was $1,107 psf. Completed in January 2011, the 43-storey The Clift by Far East Organization (FEO) is the second of three inner-city residential projects by FEO located in the Tanjong Pagar area. The first was the 646-unit Icon on Enggor Street, which was launched in 2003 following the SARS outbreak and completed four years ago.
The Clift, located on McCallum Street, is a redevelopment of the former Natwest Centre, and is just across the road from the Amoy Street Food Centre as well as a short walk from the Tanjong Pagar MRT station. The third project developed by FEO in the area is Altez, a 62-storey apartment tower comprising 280 units located in front of Icon.
In December, there were at least six transactions at The Clift, based on caveats lodged with URA Realis as at Jan 11. Transacted prices ranged from $2,100 to $2,275 psf, still nowhere near the $2,347 psf achieved for a 527 sq ft one-bedroom unit that changed hands in a sub-sale last August, or the $2,794 psf achieved when a 753 sq ft one-bedroom loft was sold by the developer at the same time for $2.11 million.
The most recent transaction was the subsale of a 775 sq ft, two-bedroom unit on the 21st level for $1.6 million ($2,100 psf). Prior to that, a 495 sq ft unit eight floors above was transacted for $1.1 million ($2,242 psf). The seller purchased the unit from the developer in August 2007 for $1.1 million ($2,199 psf), making a 2% gain in four years.
According to Jason Chen, a property agent from DTZ Debenham Tie Leung, the asking prices for One Shenton and The Clift are now comparable. Even in terms of asking monthly rental rates, they are comparable, with one-bedroom units going for $4,000 to $4,300.
With new condos such as The Clift and One Shenton fetching prices of $2,100 psf and above, some investors are gravitating towards older condos in the area, where prices are hovering around $2,000 psf or below, notes Chen. The 45-storey, 168-unit Lumiere by niche developer BS Capital was completed in August 2010. Asking prices of units in the condo tower located on Mistri Road that is a redevelopment of the former HMC Centre range from $1,700 to $1,900 psf for units on the lower floors, says Chen.
The most recent recorded transaction at Lumiere was for a 657 sq ft two-bedroom apartment on the 25th level, which changed hands for the third time for $1.4 million ($2,086 psf), according to a caveat lodged with URA Realis on Dec 12. The first owner purchased the unit from the developer for $1.1 million ($1,608 psf) in December 2006 and sold it four years later for $1.3 million ($1,917 psf). Hence, he made a 19.2% gain. The recent seller, on the other hand, enjoyed an 8.1% price appreciation when he sold the unit for $2,086 psf.
Over at Icon, which was completed in 2007, there were two caveats lodged with the URA Realis last month. Transacted prices at Icon ranged from $1,768 to $1,924 psf. At the neighbouring Altez, 190 units were sold as at end- November. The most recent transaction was for an 861 sq ft two-bedroom unit on the 40th floor, which was sold for about $2.25 million ($2,612 psf) last September.
MARINA BAY
In the Marina Bay area, at the 428-unit Marina Bay Residences, there was a sole transaction in December (based on caveats lodged with URA Realis). A 732 sq ft one-bedroom unit was sold for $1.8 million ($2,480 psf) in the resale market. The previous owner had paid $1,800 psf in 2007. The original buyer had purchased it for $1,598 psf in January 2007.
Marina Bay Residences was completed in 2010 and the record price achieved in the development was $4,368 psf last April, when a 2,368 sq ft four-bedroom apartment on the 46th level of the 55-storey tower was sold for $10.34 million. The previous owner had paid $3,500 psf for the unit just a year earlier, in March 2010.
Meanwhile, at the 1,111-unit The Sail, there were four caveats lodged with the URA Realis on Dec 5 and the transacted prices ranged from $1,840 to $2,200 psf. Prices are nowhere near the record price of $3,499 psf achieved last September, when a 1,033 sq ft two-bedroom unit in the twin-tower development changed hands for more than $3.6 million. The previous owner paid $2,049 psf for the unit in 2007.
Are the prices achieved in the CBD today indicative that they are likely to soften? Property agents are unconvinced that that prices will fall further or “fire sales” will take place. “The prices may be far from the all-time high, but this is to be expected, given the new measures introduced by the government and the current economic outlook,” says Huttons’ Ng. “Prices will definitely drop, but they are very unlikely to fall much further, as investors who have paid a premium for their units would rather hold on to them until the market picks up.”from 3.5% to 4%.
Based on the latest caveats lodged and downloaded from URA Realis as at Jan 11, there were two transactions at One Shenton last month. The most recent transaction was the sub-sale of a 1,098 sq ft two-bedroom apartment on the 37th floor for $2.53 million ($2,300 psf).
Just one floor below, a 1,130 sq ft, two-bedroom unit changed hands for $2.6 million ($2,280 psf). The previous owner had bought it for $2.3 million ($2,021 psf) in August 2007, hence making a 12.8% gain.
Designed by world-renowned architect Carlos Ott, the twin-tower landmark project located on Shenton Way is built on a retail podium. There are 341 units of one to four bedroom apartments and penthouses in two towers of 42 and 50 storeys. The project is a redevelopment of City Developments Ltd (CDL)’s former Robina House commercial building. The developer currently has less than 20 units available for sale, mainly large three- and four-bedroom apartments on the high floors.
When One Shenton was launched in January 2007, the units were sold at an average price of $2,000 psf. The highest price achieved in the condominium so far was in June 2007, when a 1,894 sq ft four-bedroom unit changed hands for $5.2 million ($2,757 psf).
TANJONG PAGAR
Another new condo in the vicinity, the 312-unit The Clift, was launched in the middle of 2006, and the average price then was $1,107 psf. Completed in January 2011, the 43-storey The Clift by Far East Organization (FEO) is the second of three inner-city residential projects by FEO located in the Tanjong Pagar area. The first was the 646-unit Icon on Enggor Street, which was launched in 2003 following the SARS outbreak and completed four years ago.
The Clift, located on McCallum Street, is a redevelopment of the former Natwest Centre, and is just across the road from the Amoy Street Food Centre as well as a short walk from the Tanjong Pagar MRT station. The third project developed by FEO in the area is Altez, a 62-storey apartment tower comprising 280 units located in front of Icon.
In December, there were at least six transactions at The Clift, based on caveats lodged with URA Realis as at Jan 11. Transacted prices ranged from $2,100 to $2,275 psf, still nowhere near the $2,347 psf achieved for a 527 sq ft one-bedroom unit that changed hands in a sub-sale last August, or the $2,794 psf achieved when a 753 sq ft one-bedroom loft was sold by the developer at the same time for $2.11 million.
The most recent transaction was the subsale of a 775 sq ft, two-bedroom unit on the 21st level for $1.6 million ($2,100 psf). Prior to that, a 495 sq ft unit eight floors above was transacted for $1.1 million ($2,242 psf). The seller purchased the unit from the developer in August 2007 for $1.1 million ($2,199 psf), making a 2% gain in four years.
According to Jason Chen, a property agent from DTZ Debenham Tie Leung, the asking prices for One Shenton and The Clift are now comparable. Even in terms of asking monthly rental rates, they are comparable, with one-bedroom units going for $4,000 to $4,300.
With new condos such as The Clift and One Shenton fetching prices of $2,100 psf and above, some investors are gravitating towards older condos in the area, where prices are hovering around $2,000 psf or below, notes Chen. The 45-storey, 168-unit Lumiere by niche developer BS Capital was completed in August 2010. Asking prices of units in the condo tower located on Mistri Road that is a redevelopment of the former HMC Centre range from $1,700 to $1,900 psf for units on the lower floors, says Chen.
The most recent recorded transaction at Lumiere was for a 657 sq ft two-bedroom apartment on the 25th level, which changed hands for the third time for $1.4 million ($2,086 psf), according to a caveat lodged with URA Realis on Dec 12. The first owner purchased the unit from the developer for $1.1 million ($1,608 psf) in December 2006 and sold it four years later for $1.3 million ($1,917 psf). Hence, he made a 19.2% gain. The recent seller, on the other hand, enjoyed an 8.1% price appreciation when he sold the unit for $2,086 psf.
Over at Icon, which was completed in 2007, there were two caveats lodged with the URA Realis last month. Transacted prices at Icon ranged from $1,768 to $1,924 psf. At the neighbouring Altez, 190 units were sold as at end- November. The most recent transaction was for an 861 sq ft two-bedroom unit on the 40th floor, which was sold for about $2.25 million ($2,612 psf) last September.
MARINA BAY
In the Marina Bay area, at the 428-unit Marina Bay Residences, there was a sole transaction in December (based on caveats lodged with URA Realis). A 732 sq ft one-bedroom unit was sold for $1.8 million ($2,480 psf) in the resale market. The previous owner had paid $1,800 psf in 2007. The original buyer had purchased it for $1,598 psf in January 2007.
Marina Bay Residences was completed in 2010 and the record price achieved in the development was $4,368 psf last April, when a 2,368 sq ft four-bedroom apartment on the 46th level of the 55-storey tower was sold for $10.34 million. The previous owner had paid $3,500 psf for the unit just a year earlier, in March 2010.
Meanwhile, at the 1,111-unit The Sail, there were four caveats lodged with the URA Realis on Dec 5 and the transacted prices ranged from $1,840 to $2,200 psf. Prices are nowhere near the record price of $3,499 psf achieved last September, when a 1,033 sq ft two-bedroom unit in the twin-tower development changed hands for more than $3.6 million. The previous owner paid $2,049 psf for the unit in 2007.
Are the prices achieved in the CBD today indicative that they are likely to soften? Property agents are unconvinced that that prices will fall further or “fire sales” will take place. “The prices may be far from the all-time high, but this is to be expected, given the new measures introduced by the government and the current economic outlook,” says Huttons’ Ng. “Prices will definitely drop, but they are very unlikely to fall much further, as investors who have paid a premium for their units would rather hold on to them until the market picks up.”from 3.5% to 4%.
Sunday, January 22, 2012
Real estate investments total $28.6 bil in 2011, says DTZ
Last year saw local real estate investment sales of $28.6 billion, exceeding the $27.9 billion achieved in 2010. It was achieved despite the global economic uncertainties in 2011, compared with better economic conditions in the previous year. The investment figures were based on deals worth more than $5 million. The increase was largely owing to the 28.8% y-o-y increase in government land sales, offsetting the 12.7% y-o-y fall in investment sales from the private sector. For 4Q2011, investment sales by both the public and private sectors registered a 67.5% q-o-q growth to $7.2 billion, although the slowing economy, which affected investor sentiment in 3Q2011, continued to affect investors in 4Q2011.
Investment activity in the residential sector was the highest for the year, representing 37.5% of investment sales, or $10.7 billion, the highest amount since 2007. However, in contrast to 2007, when residential investment sales were dominated by collective sales, investment sales in the residential sector in 2011 were driven by the sale of government land sites. Investments in office properties were the second highest at $6.9 billion, but 10.5% lower than the $7.7 billion registered in 2010, as investors stayed away in 2H2011, owing to the global economic uncertainties arising from the eurozone crisis.
High-end and mid-tier markets face tough year: Colliers
After new home sales dropped 63 percent in December, property firm Colliers International predicts a challenging year for the market across the price spectrum.
It noted that mid-tier to high-end segments will see a decline in foreign buyers, as many of them have been driven out by the additional buyer’s stamp duty (ABSD) measure.
“Although the low interest rate environment could continue to support home buying in 2012, mounting downside risks are expected to weigh down demand for homes and weaken prices,” it said.
It added that the imposition of the ABSD will “shave off some level of buying demand”, particularly from foreigners.
It noted that mid-tier to high-end segments will see a decline in foreign buyers, as many of them have been driven out by the additional buyer’s stamp duty (ABSD) measure.
“Although the low interest rate environment could continue to support home buying in 2012, mounting downside risks are expected to weigh down demand for homes and weaken prices,” it said.
It added that the imposition of the ABSD will “shave off some level of buying demand”, particularly from foreigners.
“All these could drag down demand further as prospective purchasers continue to adopt a cautious stance and hold out for possible price declines. Thus, take-up for new homes in 2012 could potentially drop to between 9,000 and 11,000 units from 2011’s 16,027 units.”
Meanwhile, Colliers expects the mid-tier and high-end markets to be hit harder.
“This is in view that foreign buyers currently form a major demand base of buyers for private home sales in these segments and they are likely to be deterred by the imposition of the ABSD to some extent.”
Although there is demand from genuine and first-time buyers in the mass-market segment, Colliers said the grim market outlook and lower job prospects as well as the abundant land supply in the pipeline from the 1H2012 Government Land Sales (GLS) Programme for residential property development could stall buying decisions.
“This is in view that foreign buyers currently form a major demand base of buyers for private home sales in these segments and they are likely to be deterred by the imposition of the ABSD to some extent.”
Although there is demand from genuine and first-time buyers in the mass-market segment, Colliers said the grim market outlook and lower job prospects as well as the abundant land supply in the pipeline from the 1H2012 Government Land Sales (GLS) Programme for residential property development could stall buying decisions.
Saturday, January 14, 2012
Property agents report more enquiries from home sellers
Property investors are facing a test of nerves more than a month after tough new cooling measures were introduced. Since the Dec 7 announcement, a stream of negative reports have surfaced, with the most dire predicting a nosedive of up to 30% in home prices. Agents say they have been getting more calls from jittery clients worried about the impact the measures and global economic uncertainty will have on prices.They wonder if they should sell quickly while prices are still at high levels. However, agents feel confident that panic selling is unlikely as bank deposit rates are still low and investors still see property as a better place to park cash and it could be a knee-jerk reaction and that the market might settle down after the shock of the measures passes. Still, another factor causing some anxiety to owners of mass market homes is the bumper supply of suburban land released by the Government. The continued strong supply of EC sites - a public-private housing hybrid - is also of concern as it appears set to siphon demand away from the private market. The Government has indicated it is ready to supply sites for up to 5,000 EC units this year.
- The Straits Times Online, Prime News
Exchange Rates (extracted from xe.com)
1.00 SGD = 0.77 USD
1.00 SGD = 4.87 CNY
1.00 SGD = 2.42 MYR
1.00 SGD = 0.50 GBP
1.00 SGD = 889.73 KRW
1.00 SGD = 39.85 INR
1.00 SGD = 7,019.91 IDR
1.00 SGD = 6.00 HKD
1.00 SGD = 4.95 MMK
1.00 SGD = 16,267.65VND
ST Index change: 2,791.54 (+47.88) *As at Fri, Jan 13, 2012, 17:58
SIBOR (3 mths): 0.39250 (S$)
SWAP (3 mths): 0.51383 (S$)
- The Straits Times Online, Prime News
Exchange Rates (extracted from xe.com)
1.00 SGD = 0.77 USD
1.00 SGD = 4.87 CNY
1.00 SGD = 2.42 MYR
1.00 SGD = 0.50 GBP
1.00 SGD = 889.73 KRW
1.00 SGD = 39.85 INR
1.00 SGD = 7,019.91 IDR
1.00 SGD = 6.00 HKD
1.00 SGD = 4.95 MMK
1.00 SGD = 16,267.65VND
ST Index change: 2,791.54 (+47.88) *As at Fri, Jan 13, 2012, 17:58
SIBOR (3 mths): 0.39250 (S$)
SWAP (3 mths): 0.51383 (S$)
Thursday, January 12, 2012
The five projects, Fernvale Lea, Sunshine Gardens, Tampines Alcoves, Tampines GreenTerrace (pictured) and Waterway Sunbeam, make up the first BTO launch of the 25,000 units planned for 2012.
“At least 95 percent of the flat supply (excluding studio apartments) will be set aside for first-timer households. Eligible first-timer households can also enjoy various housing grants to help them own a new BTO flat,” HDB said.
The Fernvale Lea project features two- to five-room flats with prices starting from S$83,000, or S$23,000 after grants.
Tampines Alcoves offers studio apartments and three-room flats, while Tampines GreenTerrace offers three- and four-room flats. Prices start from S$86,000.
Meanwhile, Sunshine Gardens offers studio apartments and three- to five-room flats priced from S$77,000.
At the same time, Waterway Sunbeam features three- to five-room flats with prices starting from S$117,000.
In its next BTO launch scheduled for March, HDB will offer about 4,110 new flats for sale in Bukit Batok, Bedok, Bukit Timah, Bukit Panjang, Geylang, Toa Payoh and Clementi.
Applications for the newly launched flats are open until 17 January.
Friday, January 6, 2012
REDAS, government air views over latest measures
Deeply divergent views from the government and developers regarding the recent property cooling measures were aired at the Real Estate Developers Association of Singapore’s (REDAS) 52nd anniversary dinner.
The event was the first public function for the industry after the Singapore government imposed the latest cooling measures.
Tan Chuan-Jin, Minister of State for National Development and Manpower, was invited as the guest-of-honour at last night’s event. In his presence, Wong Heang Fine, President of REDAS, called the additional buyer’s stamp duty (ABSD) “Another Bad Shock for Developers”.
Tan noted that he did not expect property developers to welcome the measures. He reiterated that the measures had been imposed for a sustainable and stable property market.
“Our small property market is attractive to foreign funds…(so) the latest measure is a targeted and measured move to moderate such investment demand in order to avoid the need for a major correction down the road,” he said.
Wong, however, pointed out that beyond the short-term concerns of falling prices and property sales volumes, there are longer-term concerns.
He said that the government measures have resulted in a higher cost structure for developers due to higher land acquisition costs, which could have a knock-on effect on mortgages, leading to a possible fall in home equity values and shrinking wealth.
“One analyst is even of the view that these harsh measures could tip the economy — already on the edge — into recession,” Wong added.
“With real estate activities accounting for some 5.2 percent of GDP, a 25 percent fall in property transactions in 2012 could shave GDP growth by about 1.3 percent.”
The event was the first public function for the industry after the Singapore government imposed the latest cooling measures.
Tan Chuan-Jin, Minister of State for National Development and Manpower, was invited as the guest-of-honour at last night’s event. In his presence, Wong Heang Fine, President of REDAS, called the additional buyer’s stamp duty (ABSD) “Another Bad Shock for Developers”.
Tan noted that he did not expect property developers to welcome the measures. He reiterated that the measures had been imposed for a sustainable and stable property market.
“Our small property market is attractive to foreign funds…(so) the latest measure is a targeted and measured move to moderate such investment demand in order to avoid the need for a major correction down the road,” he said.
Wong, however, pointed out that beyond the short-term concerns of falling prices and property sales volumes, there are longer-term concerns.
He said that the government measures have resulted in a higher cost structure for developers due to higher land acquisition costs, which could have a knock-on effect on mortgages, leading to a possible fall in home equity values and shrinking wealth.
“One analyst is even of the view that these harsh measures could tip the economy — already on the edge — into recession,” Wong added.
“With real estate activities accounting for some 5.2 percent of GDP, a 25 percent fall in property transactions in 2012 could shave GDP growth by about 1.3 percent.”
Monday, January 2, 2012
New year, new policies, new measures
More flats coming up
HDB will offer 25,000 more built to order flats this year, starting with a launch of 3,890 flats in Choa Chu Kang, Punggol, SengKang and Tampines this month.
Better chances for second timers
HDB balloting rules will be tweaked this year to allow second time applicable a better chance of getting a flat.
Fate of DBSS projects
Land sales for Design, Build and Sell Scheme (DBSS) projects which are HDB flats built by the private sector were suspended last year following a public out cry at the high $880,000 price tag of a unit at Centrale 8 in Tampines.
All eyes will be on wheather the scheme will resume or be discontinued this year
HDB will offer 25,000 more built to order flats this year, starting with a launch of 3,890 flats in Choa Chu Kang, Punggol, SengKang and Tampines this month.
Better chances for second timers
HDB balloting rules will be tweaked this year to allow second time applicable a better chance of getting a flat.
Fate of DBSS projects
Land sales for Design, Build and Sell Scheme (DBSS) projects which are HDB flats built by the private sector were suspended last year following a public out cry at the high $880,000 price tag of a unit at Centrale 8 in Tampines.
All eyes will be on wheather the scheme will resume or be discontinued this year
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