SINGAPORE — Although still a good hedge against inflation, the days of making a quick buck from property are over, declared a senior property analyst on Tuesday (July 17).
With the Government’s latest cooling measures, owners attempting a collective sale will have to reduce their asking price to seal the deal as the cost of land acquisition has increased significantly for developers, said JLL’s head of research and consultancy Tay Huey Ying at an industry seminar organised by the Real Estate Developers’ Association of Singapore (Redas).
The cooling measures that took effect on July 6 saw Additional Buyer’s Stamp Duty (ABSD) rates raised and Loan-to-Value limits tightened for Singapore citizens, permanent residents and foreigners in a bid to “keep prices in line with economic fundamentals”.
Besides a 10 percentage-point increase in ABSD rates for developers, they are also subjected to a 5 per cent ABSD that is non-remittable if they buy residential properties for development.
Homeowners typically make higher profits by going en bloc than by selling their homes on the resale market.
Although there is “still room for collective sale activity”, the en bloc market will slow down further, Ms Tay said.
More at
Days of making a 'quick buck' from property are over: Analyst
With the Government’s latest cooling measures, owners attempting a collective sale will have to reduce their asking price to seal the deal as the cost of land acquisition has increased significantly for developers, said JLL’s head of research and consultancy Tay Huey Ying at an industry seminar organised by the Real Estate Developers’ Association of Singapore (Redas).
The cooling measures that took effect on July 6 saw Additional Buyer’s Stamp Duty (ABSD) rates raised and Loan-to-Value limits tightened for Singapore citizens, permanent residents and foreigners in a bid to “keep prices in line with economic fundamentals”.
Besides a 10 percentage-point increase in ABSD rates for developers, they are also subjected to a 5 per cent ABSD that is non-remittable if they buy residential properties for development.
Homeowners typically make higher profits by going en bloc than by selling their homes on the resale market.
Although there is “still room for collective sale activity”, the en bloc market will slow down further, Ms Tay said.
More at
Days of making a 'quick buck' from property are over: Analyst
