View Full Version : Raising ABSD for second homes among new property-cooling measures announced
https://www.channelnewsasia.com/news/singapore/raising-absd-for-second-homes-among-new-property-cooling-10502710
Raising ABSD for second homes among new property-cooling measures announced
05 Jul 2018 07:21PM
SINGAPORE: The Government on Thursday (Jul 5) announced it would raise Additional Buyer Stamp Duty (ABSD) rates and tighten Loan-to-Value (LTV) limits on residential property purchases in an effort to "cool the property market and keep price increases in line with economic fundamentals".
In a press release jointly sent by the finance and national development ministries, as well as the Monetary Authority of Singapore, the authorities said the ABSD will be raised by 5 percentage points for citizens and permanent residents buying second and subsequent homes, and by 10 percentage points for entities.
An additional ABSD of 5 per cent, which is non-remittable under the Remission Rules, will also be introduced for developers purchasing residential properties for housing development.
LTV limits will be tightened by 5 percentage points for all housing loans granted by financial institutions, the release stated.
The authorities noted that private residential prices increased by 9.1 per cent over the past year.
"The sharp increase in prices, if left unchecked, could run ahead of economic fundamentals and raise the risk of a destabilising correction later, especially with rising interest rates and the strong pipeline of housing supply," they said.
https://www.channelnewsasia.com/image/10502750/0x0/661/582/e9f4cc2811b56fc818c7a4cb3cc022bb/cc/absd-rates.jpg
Congrats to the 10% The Garden Residences buyer, wow.
Wah just before riverfront is launched. R they going to launch it tonite?
what's the likelihood of % drop immediately from earlier rounds of cooling measures?
$50,000 saving just OTP tonight
Urgent Urgent Announcement!!
*Announcement 1*
*Riverfront & Park Colonial*
is launching today 5th June!!
1st come 1st Serve!
*Announcement 2*
*ALL PropNex Showflats will OPEN until LATE, Bring your buyers*
LAST CHANCE to Enjoy OLD ABSD and 80% LOAN!!
$50,000 saving just OTP tonight
Urgent Urgent Announcement!!
*Announcement 1*
*Riverfront & Park Colonial*
is launching today 5th June!!
1st come 1st Serve!
*Announcement 2*
*ALL PropNex Showflats will OPEN until LATE, Bring your buyers*
LAST CHANCE to Enjoy OLD ABSD and 80% LOAN!!
Bro, it is July already.
Stirling also open for emergency sale ha ha.
Might see some projects doing write downs later this year i guess.
sginvestor
05-07-18, 20:10
as i have mentioned in other posts, the developers should have launched earlier.
From what I have read, I may be wrong, but JP Morgan was the only research house to warn about additional cooling measures.
Kudos to JP Morgan!
sginvestor
05-07-18, 20:12
congrats to the 10% buyers?
who's going to buy from them later on? the future buyers who buy from them will have to contend with a 75% loan
$50,000 saving just OTP tonight
Urgent Urgent Announcement!!
*Announcement 1*
*Riverfront & Park Colonial*
is launching today 5th June!!
1st come 1st Serve!
*Announcement 2*
*ALL PropNex Showflats will OPEN until LATE, Bring your buyers*
LAST CHANCE to Enjoy OLD ABSD and 80% LOAN!!
All the best for tonight sales. Think will be a sold out
I recalled the Echelon and La Fiesta also did the same on the night the last cooling measures were announced.
Did those that signed that night profit from that decision? I didnt check the transactions but that shld provide a good guide.
bargain hunter
05-07-18, 21:10
there's a stampede at riverfront resi. still waiting to see other pics from other showflats hehehe. pretty entertaining.
Any pricing to share? Or just get OTP and fill in price later?
there's a stampede at riverfront resi. still waiting to see other pics from other showflats hehehe. pretty entertaining.
Can share some pic pls? Thanks
Riverfront
https://www.facebook.com/huttonsgroup/videos/1847566301976526/
Stirling
https://www.facebook.com/huttonsgroup/videos/1847562098643613/
bargain hunter
05-07-18, 21:24
https://www.facebook.com/Propertyguru.sg/photos/a.194176530608888.57257.193913523968522/2357799337579919/?type=3&theater
not good at pasting photos, so gotta paste the fb links for now.
bargain hunter
05-07-18, 21:25
Any pricing to share? Or just get OTP and fill in price later?
no discount information heard. i can imagine the late comers signing on a blank OTP first then later decide to buy or tear lol.
no discount information heard. i can imagine the late comers signing on a blank OTP first then later decide to buy or tear lol.
Tomorrow developers and banks stock market price drop.
sginvestor
05-07-18, 21:49
don't see what's the rush...
for first time buyers, just pay 5% more in cash and take up less borrowings
bargain hunter
05-07-18, 21:52
don't see what's the rush...
for first time buyers, just pay 5% more in cash and take up less borrowings
but their choice units would be gone to the second ppty purchases if they don't join the stampede.
Park Colonial
https://www.facebook.com/ch8news/videos/2091140860904219/
I can understand why the rush as who wants to pay more to the government?
The earlier ABSD is already a huge disincentive already.
Last chance to buy 2nd property. This is the final chance. Want to be landlord is very hard after this. CPF money will be trapped until 55yrs old. Very smart move.
For those who have more than 1 property once u sell away 1 it is not possible to buy again.
bargain hunter
05-07-18, 22:05
For those who have more than 1 property once u sel away 1 it is not possible to buy again.
this is the same issue as previous cooling measures rite? people keep thinking cooling measures will crash the market low enough to buy but it doesn't happen.
It did kill transaction volume and did dampen the prices for a while, until the enbloc frenzy happened in nov 2017
Actually resale prices did not go up much. Only new launches went up alot. Y dampen the resale market?
Cyberknight
05-07-18, 22:18
The writing is on the wall when Vancouver cooling measures went into overdrive
https://www.google.com.sg/amp/s/www.theglobeandmail.com/amp/real-estate/vancouver/vancouver-housing-sales-slump-as-market-braces-for-tax-impact/article38195805/
bargain hunter
05-07-18, 22:23
Actually resale prices did not go up much. Only new launches went up alot. Y dampen the resale market?
precisely. need bro kelonguni's insight. i really dun understand why now.
book your condo unit today (https://maximise.sg), before 2359HR and you could save *>5% on your purchase price.
PropVestor
05-07-18, 22:31
It’s a move to whack the rich from being too bullish and developers (curb demand side).
Land prices up. New launch pricing up. Resale did not really go up. HDB price even went south abit.
sginvestor
05-07-18, 22:35
YoY prices have already increased by more than 10%, effectively close to wiping off the 10% decline which the previous cooling measures took 3-4 yrs to achieve.
Imagine losing what you have worked so hard for 3 -4 yrs in just 1 year.
Since last Dec, the MAS had issued warnings over the euphoria in property market.
Even up to yesterday, I kept wondering when the government was finally taking action.
It did kill transaction volume and did dampen the prices for a while, until the enbloc frenzy happened in nov 2017
Cannot blame enbloc. Developers need to replenish land bank to do business.
bargain hunter
05-07-18, 23:09
YoY prices have already increased by more than 10%, effectively close to wiping off the 10% decline which the previous cooling measures took 3-4 yrs to achieve.
Imagine losing what you have worked so hard for 3 -4 yrs in just 1 year.
Since last Dec, the MAS had issued warnings over the euphoria in property market.
Even up to yesterday, I kept wondering when the government was finally taking action.
there's no euphoria. serangoon gardens sales was already so cool. but the gahmen's announcement just caused euphoria at at least 3 showflats. hahaha
Actually resale prices did not go up much. Only new launches went up alot. Y dampen the resale market?
Hdb upgraders might turn to resale so that they can immediately sell off their hdb (b4 further lease decay) and at the same time they can pay and quuckly claim back their ABSD. Looks like more and more obstacles for these group.
precisely. need bro kelonguni's insight. i really dun understand why now.
I read this as a herding strategy.
This will push those who can comfortably afford private to give up their HDB.
E.g. 7% ABSD can recoup in about 2 years of rent. 12% needs about 4 years.
That will cause many more to release their HDBs to be free to buy private without ABSD, on top of forcing those who have been preparing to pay the 7% to quickly commit.
It’s a good slow heat strategy.
Can buy quickly buy or more heartache awaits.
Ultimately, those who can afford it will have to shoulder the tax burden!
30% tax for developers buying private...its going to impact en-bloc.
challenger
05-07-18, 23:39
precisely. need bro kelonguni's insight. i really dun understand why now.
I suspect quantum of price increase hit a threshold. Once exceed threshold, need to implement cooling measure. Some more got speculation going to hit new high. Big mouth.
Any changes to LTV?
Yes, loan 5% less.
bargain hunter
06-07-18, 00:12
Times up. Last order?
https://www.channelnewsasia.com/news/singapore/absd-showflats-queues-property-cooling-measures-10503216
the title itself is so ironic. i think everyone who is still queuing up now deserves an OTP dated 5th July. they r going to be queuing through the night. the queue at riverfront residences has overflowed huge outside.
bargain hunter
06-07-18, 00:14
30% tax for developers buying private...its going to impact en-bloc.
i think en bloc will be badly hit. 5% makan by gahmen right away.
bargain hunter
06-07-18, 00:18
I read this as a herding strategy.
This will push those who can comfortably afford private to give up their HDB.
E.g. 7% ABSD can recoup in about 2 years of rent. 12% needs about 4 years.
That will cause many more to release their HDBs to be free to buy private without ABSD, on top of forcing those who have been preparing to pay the 7% to quickly commit.
It’s a good slow heat strategy.
Can buy quickly buy or more heartache awaits.
Ultimately, those who can afford it will have to shoulder the tax burden!
the 7% part prob only valid at showflats till later this morning but that's about it haha. after that it "walks into history".
the dump hdb for private trend will continue to be in play.
http://m.gaochengnews.net/pinglun/18254.html?from=timeline&isappinstalled=0
Comparison against china and sgp properties. On the prices and interest rate
Buy 1 Million dollar property you need to pay extra.
12% = 120K
15% = 150K
tonymontana
06-07-18, 07:44
I read this as a herding strategy.
This will push those who can comfortably afford private to give up their HDB.
E.g. 7% ABSD can recoup in about 2 years of rent. 12% needs about 4 years.
That will cause many more to release their HDBs to be free to buy private without ABSD, on top of forcing those who have been preparing to pay the 7% to quickly commit.
It’s a good slow heat strategy.
Can buy quickly buy or more heartache awaits.
Ultimately, those who can afford it will have to shoulder the tax burden!
The latest policy moves are two pronged - one is to cool down the enbloc market. The other broader objective is to ensure a steady and gradual appreciation of property assets in asset rich singaporeans / residents. But I personally think they are over micromanaging / over engineering the market now. There is really no need for additional ABSD on retail investors as the market has not seen broad based recovery in all locations. With such proactive policy tweaking, it will be increasingly difficult for laymen to get into the property investment ladder. I guess the gahmen is discouraging everyone from being landlords.
For existing landlords, one bright spot would be that this latest move will put off a whole segment of foreigners / PR from buying their property and this preserves the pool of tenants for us.
tonymontana
06-07-18, 07:48
Buy 1 Million dollar property you need to pay extra.
12% = 120K
15% = 150K
Extra 50K. The increase is 5% from existing, sorry! previous, rates. That's an additional 2 years of lease to claw back.
In the long term, not such a big thing.
Just leaves a sour taste in the mouth.
For 2nd property If u don't buy yesterday your CPF will be locked in till age 55 as u need to pay extra stamp duty. For those age 30s by the time u reached 55yrs old CPF min sum will likely be $300k or more. If u buy after 6 july govt made another 5% from absd. What a smart move to trap your cpf.
tonymontana
06-07-18, 08:15
star, it's best not to keep mentioning CPF CPF, trust me on this. Our govt is trigger happy.
Sorry it is not 55yrs old, should be 65yrs old. Min sum will be locked till 65yrs old
The impact on the enbloc market is very significant or putting enbloc RIP.
Other than paying higher duty on the purchases by the developers, the demand side is going to come down.
So, all the old 99 LH properties aiming for big money from enbloc will face the reality of cannot find buyers as there is limit on CPF withdrawal
BTW, how is IRAS going to know whether the OTP is signed before or after 2359?
is there a time-stamp by the agents?
Any damage report from the overnight storm in showflats?
overnight become buyers market ?
City development share price drop 16% now.
City development share price drop 16% now.
They can start selling attap houses for those ultra expensive land they paid for.
Just build more 300sqft mickey mouse, and throw in aloft.
Low quatuam, ultra high psf
Now the garden residences really need to give out free car for every purchase.
Unconfirmed,
Total tally:
*Park Colonial*
Huttons : 91
ERA : 119
PropNex : 100
Total = 310 units sold
*Riverfront*
Huttons : 135
ERA : 177
PropNex : 199
Total = 511 units sold
*Stirling*
Huttons : 86
ERA : 70
OT : 31
Total = 187 units sold
with this new cooling measure who still dare to buy second property to play
easily close to 100k even for a MM unit
the rental collect also cannot recover back the ABSD
Unconfirmed,
Total tally:
*Park Colonial*
Huttons : 91
ERA : 119
PropNex : 100
Total = 310 units sold
*Riverfront*
Huttons : 135
ERA : 177
PropNex : 199
Total = 511 units sold
*Stirling*
Huttons : 86
ERA : 70
OT : 31
Total = 187 units sold
It is not possible to finish so much paper work for so many units within hours....
the property will go the same way as the car market, only the rich can afford
overnight become buyers market ?
only for first time buyers and perhaps those who have enbloc-ed and have no other property.
i think en bloc will be badly hit. 5% makan by gahmen right away.
Enblocs will come to a standstill.
the property will go the same way as the car market, only the rich can afford
Yeah. Car market inflate up the price that you need for the loan.
Just figures so that you take out lesser cash, or otherwise same amount
the property will go the same way as the car market, only the rich can afford
Car COE already dropped from $80k to now $25k...
tonymontana
06-07-18, 11:12
Car COE already dropped from $80k to now $25k...
but don't worry, there is no way 800k property will drop to 250k, so those on the sidelines: dream on!
but don't worry, there is no way 800k property will drop to 250k, so those on the sidelines: dream on!
Of course, speculator had long gone after the 2010-2013 counter measures. Now left are those better holding power, unless going for upgrade or downgrade. Either way sell too cheap can’t upgrade or downgrade.
For 2nd property If u don't buy yesterday your CPF will be locked in till age 55 as u need to pay extra stamp duty. For those age 30s by the time u reached 55yrs old CPF min sum will likely be $300k or more. If u buy after 6 july govt made another 5% from absd. What a smart move to trap your cpf.
anyone know what is this babbling about??
anyone know what is this babbling about??
Because now you have to fork out more cash for down payment.
PropVestor
06-07-18, 13:54
I do think those who own 2 properties post 2013 need to think very carefully. LTV is the best safeguard for MAS to stress test loans and repayments. Even in 2013, they stress test you at above 2-3% interest rates before they release the funds to you for purchase. MAS should rest assure that folks are not over leveraged in terms of loan but where they get the cash component for it. Its anyone's guess.
Those in their 20-30s buying their first property for own stay should be quite glad that prices might not go up that fast. They probably need someone to help out for their initial cash payment after today.
starrynight
06-07-18, 14:10
My thoughts exactly. I was told anecdotally things continued to "happen" into the wee hours of the morning.
BTW, how is IRAS going to know whether the OTP is signed before or after 2359?
is there a time-stamp by the agents?
Park Colonial
Huttons : 91
ERA : 119
PropNex : 100
Total = 310 units sold
Riverfront
Huttons : 135
ERA : 177
PropNex : 199
Total = 511 units sold
Stirling
Huttons : 86
ERA : 70
OT : 31
Total = 187 units sold
Did the Rich become Richer and the Poor become Poorer.
God already bless me with 2 private condo, they just cost 12% and 15% more if I buy today.
If each cost 1.5 million, it will cost me 180,000 + 225,000 = 405,000.
I need to work 405,000/50,000= 8 years if my salary a year is 50K a year.
Thanks Lord for the daily bread, Amen.
Luckily i never buy propnex ipo. Drop big time.
Luckily i never buy propnex ipo. Drop big time.
It's not only propnex . Basically all property company share drop like it's going to crash .
Will it continue to drop further on Monday ?
So now another property winter has started? Wonder what will happen to those enbloc launches in the pipeline.
So now another property winter has started? Wonder what will happen to those enbloc launches in the pipeline.
Agree, I like white winter.
https://scontent.fsin3-1.fna.fbcdn.net/v/t1.0-9/419112_2810585736709_13230273_n.jpg?_nc_cat=0&oh=808e088e4696c50ff381e45e42e428eb&oe=5BE66D6A
Riverfront Residences showflat opens today.
Prices will increase by 1% wef tomorrow
Agree, I like white winter.
https://scontent.fsin3-1.fna.fbcdn.net/v/t1.0-9/419112_2810585736709_13230273_n.jpg?_nc_cat=0&oh=808e088e4696c50ff381e45e42e428eb&oe=5BE66D6A
Riverfront Residences showflat opens today.
Prices will increase by 1% wef tomorrow
I think if no cooling measures price increase will be more...
I think if no cooling measures price increase will be more...
Live update, one more sold in TGR.
Can buy don't buy will never buy whether market up or down.
Last night 4 hrs sales:
Park Colonial
Huttons : 91
ERA : 119
PropNex : 100
Total = 310 units sold
(805 units)
Riverfront
Huttons : 135
ERA : 177
PropNex : 199
Total = 511 units sold
(1,472 units)
Stirling (revised)
Huttons : 85
ERA : 73
OT : 35
VIP : 7
Total = 200 units sold
(1,259 units)
bargain hunter
06-07-18, 17:34
Live update, one more sold in TGR.
Can buy don't buy will never buy whether market up or down.
is the buyer paying 12% absd or no need to pay absd?
Because now you have to fork out more cash for down payment.
Then dont buy lor.. go buy shares or something else.... loh
is the buyer paying 12% absd or no need to pay absd?
??
https://scontent.fsin3-1.fna.fbcdn.net/v/t1.0-9/36673554_10214164064873936_1256906790306578432_o.jpg?_nc_cat=0&oh=8f6d7fedd0de28b883c26b43649c4f31&oe=5BE91568
bargain hunter
06-07-18, 21:34
??
u reported 'live' another unit sold mah. so i was wondering if u knew if this buyer was paying 12% or 15% ABSD or was a first timer who need not pay absd that's all.
u reported 'live' another unit sold mah. so i was wondering if u knew if this buyer was paying 12% or 15% ABSD or was a first timer who need not pay absd that's all.
ic, was told something happen tomorrow go kp find out what happen.
MAS 5% should help most waiting to get on the Boat instead of waiting.
Buying 2 investment property of 1 million will cost another 120K and 150K extra, COE should become cheap now.
For those who bought near MRT, they save 8X more after paying the ABSD.
PC is moving fast while the one waiting still think of the crash coming.
bargain hunter
06-07-18, 21:59
heard affinity absorbing the 5% absd this weekend. oxley in a rush to move units.
La fiesta condo was also an overnight sales launch queue to beat the cms.
Pls check if there’s profits, or blood on the street...?
And so I don’t understand people saying buyers/ fools rushing in..? Until the meltdown, who’s the real fools we still don’t know yet
bargain hunter
07-07-18, 00:11
La fiesta condo was also an overnight sales launch queue to beat the cms.
Pls check if there’s profits, or blood on the street...?
And so I don’t understand people saying buyers/ fools rushing in..? Until the meltdown, who’s the real fools we still don’t know yet
nobody said fools rush in did they? save 5%, its correct to rush in. but if oxley willing to absorb the 5% for affinity then it makes no difference to the buyers.
nobody said fools rush in did they? save 5%, its correct to rush in. but if oxley willing to absorb the 5% for affinity then it makes no difference to the buyers.
Read yahoo news,with plenty of sour grapers comments
Read yahoo news,with plenty of sour grapers comments
Lots of sour grapers in sg. Especially when u bought condo they will shout price crash, dropping. I think govt should price up 50% to shut their mouths.
stalingrad
07-07-18, 04:30
Haha, so typical of the PAP. Get used to it, it is just how they operate as the master class of Singapore.
Govt raises ABSD, tightens LTV limits to cool Singapore property market
Thu, Jul 05, 2018
The government has decided to raise the additional buyer's stamp duty (ABSD) and tighten loan-to-value (LTV) limits on residential property purchases.
IN a bid to cool the residential property market and prevent prices from running ahead of economic fundamentals, the Singapore government has decided to raise the additional buyer's stamp duty (ABSD) and tighten loan-to-value (LTV) limits on residential property purchases.
The current ABSD rates for Singapore citizens and Singapore permanent residents (SPR) purchasing their first residential property will remain at zero and 5 per cent respectively.
But the ABSD rates for all other individuals will be raised by five percentage points and 10 percentage points for entities.
An additional ABSD of 5 per cent that is non-remittable under the Remission Rules (payable on the purchase price or market value, whichever is applicable) will also be introduced for developers buying residential properties for housing development.
For LTV limits, they will be tightened by five percentage points for all housing loans granted by financial institutions. These revised LTV limits will apply to loans for residential property purchases where the option to purchase is granted on or after July 6. But they do not apply to loans granted by HDB.
In line with the tightening of LTV limits for housing loans, LTV limits for mortgage equity withdrawal loans (MWLs) will be tightened to 75 per cent for a borrower with no outstanding housing loan for the purchase of another residential property; for a borrower with an outstanding housing loan, it will be 45 per cent for another residential purchase.
The surprise move came hot on the heels of the release of second-quarter flash estimates on Monday, which saw private home prices rapidly regaining the ground they lost since values started slipping five years ago.
With the 3.4 per cent rise in private home prices in the second quarter, prices have risen by a total of 9.1 per cent over four quarters since mid-2017. They had earlier taken 15 straight quarters of decline to push private home prices down 11.6 per cent by the middle of last year.
This steep price recovery has led market watchers to predict a new peak in private home prices by the end of this year.
"The sharp increase in prices, if left unchecked, could run ahead of economic fundamentals and raise the risk of a destabilising correction later, especially with rising interest rates and the strong pipeline of housing supply," said the Ministry of Finance, Ministry of National Development and Monetary Authority of Singapore in a joint statement on Thursday.
"Demand for private residential property has also seen a strong recovery, as transaction volumes continue to rise," the government said on Thursday.
"The government will continue to monitor the property market and adjust our policies as necessary, to maintain a stable and sustainable property market."
I remember there were some who bought under deferred option scheme whereby the Developers offer long OTP period whereby the buyers have up to 2 years to exercise option.
Now instead of relaxing ABSD or LTV, these are tightened. Wonder what they will do. Let option lapsed?
I remember there were some who bought under deferred option scheme whereby the Developers offer long OTP period whereby the buyers have up to 2 years to exercise option.
Now instead of relaxing ABSD or LTV, these are tightened. Wonder what they will do. Let option lapsed?
IIRC the current kind of DPS applies to completed units that have achieved TOP. Not uncompleted units.
But these buyers still have not pay ABSD rt?
A very interesting observation on the ABSD. I suppose buyers can either save up the additional 5% or sell their existing houses.
But these buyers still have not pay ABSD rt?
Buyers who delay exercising S&P are usually those who just sold their current property and intend to buy a new property at the same time while waiting for completion and cash proceeds to come in. Thus, not affected by ABSD as it is still consider as their first property. (As Long as they can produce the stamp duty cert from their buyer of their current property as a proof they r not holding 2 properties)
Another type of buyers are those who are holding on to HDB/EC who have not satisfy the MOP but wanted to buy a new property now. Then these buyers may negotiate with developer to extend their S&P until MOP. If developer agrees, they will then sell HDB/EC within 6 months. Thus no ABSD on them as well.
All in all, pple extend S&P because they want to avoid ABSD. Doesn’t matter it is 7% or 12%.
I remember there were some who bought under deferred option scheme whereby the Developers offer long OTP period whereby the buyers have up to 2 years to exercise option.
Now instead of relaxing ABSD or LTV, these are tightened. Wonder what they will do. Let option lapsed?
Option should had been exercised, only start payment after 2 years.
And you have highlighted this important point. Probably developers can opt to build first and collect as 7%+3% absd. Offer deferred payment after 3years to collect the balance 5%. Meanwhile owners first 3 years rental to offset the additional absd.
Or on DPS, 3years for developer to collect rental and offsetting on behalf owners.
In china, their scheme you buy and rent back to them as serviced apartment/hotel for 8years at fixed price.
After the 8th year, the property is as good as paid up
Anyway developers have the money, and the ideas. Just if they want or not to do new packaging
On July 2, when the URA released its flash estimates that prices went up 7.3%, analysts were predicting that prices will go up by 12-15% or even more for the whole year. This means that second half of 2018 will see an increase of about 5-10%. With the new ABSD of only additional 5%, all things remaining the same, we should see prices in the rest of 2018 go up by another 5% or at worst remaining flat. So I don't understand why these same analysts are now saying the cooling measures are excessive.
Maybe Analysts were also planning to buy?
On July 2, when the URA released its flash estimates that prices went up 7.3%, analysts were predicting that prices will go up by 12-15% or even more for the whole year. This means that second half of 2018 will see an increase of about 5-10%. With the new ABSD of only additional 5%, all things remaining the same, we should see prices in the rest of 2018 go up by another 5% or at worst remaining flat. So I don't understand why these same analysts are now saying the cooling measures are excessive.
recently saw investor/speculator jumping to buy old condo with en bloc potential. Neptune court 16xx used to be 1.2 sold for 1.5M, smallest unit at mandarin garden used to be 700k 2 years ago sold at 900K. Will be interesting to see the en bloc market going forwards especially those large size ones.
The new CM has put a brake to all the enbloc particularly the mega projects.
I cannot count how much taxes the developers have to pay... 5% + 25% (?) upon purchases and 25% ABSD with accumulated interest for the unsold units after 5 years.
The project risk for the mega enbloc is far too high financially. As such, all these will be RIP.
Now the owners will have great difficulties to find buyers, who need to be super cash rich. On top of this, renovation and maintenance are nightmare.
Govt will happily wait for the 99 years lease to expire.
recently saw investor/speculator jumping to buy old condo with en bloc potential. Neptune court 16xx used to be 1.2 sold for 1.5M, smallest unit at mandarin garden used to be 700k 2 years ago sold at 900K. Will be interesting to see the en bloc market going forwards especially those large size ones.
They are call specu-vestor now.
Yah, make sense to have defer payment
Only Completed project.
https://www.straitstimes.com/business/property/deferred-payment-plans-at-more-condos
The latest versions of DPS are different from what they were previously, as they are now only allowed after the Certificate of Statutory Completion is issued, and the project is delicensed and no longer under the purview of the Controller of Housing.
https://www.propertyguru.com.sg/property-management-news/2017/5/153181/understanding-deferred-payment-schemes
The new CM has put a brake to all the enbloc particularly the mega projects.
I cannot count how much taxes the developers have to pay... 5% + 25% (?) upon purchases and 25% ABSD with accumulated interest for the unsold units after 5 years.
The project risk for the mega enbloc is far too high financially. As such, all these will be RIP.
Now the owners will have great difficulties to find buyers, who need to be super cash rich. On top of this, renovation and maintenance are nightmare.
Govt will happily wait for the 99 years lease to expire.
Quite clearly need to change the Govt in order to reverse these crazy rules. :sneakiness:
Amber Woods
08-07-18, 11:13
The new CM has put a brake to all the enbloc particularly the mega projects.
I cannot count how much taxes the developers have to pay... 5% + 25% (?) upon purchases and 25% ABSD with accumulated interest for the unsold units after 5 years.
The project risk for the mega enbloc is far too high financially. As such, all these will be RIP.
Now the owners will have great difficulties to find buyers, who need to be super cash rich. On top of this, renovation and maintenance are nightmare.
Govt will happily wait for the 99 years lease to expire.
It is good that the government is taking control of private land sale instead of leaving it to private developers like in Hong Kong which resulted in highly inflated asset prices. Perhaps, the government wants to narrow the price gap between private LH with aging HDB LH. This is to ensure more equitable wealth redistribution.
A new group of buyers will emerge in this market. They have been waiting very long le.
They will sell their HDB to buy.
We can watch this space closely.
The new CM has put a brake to all the enbloc particularly the mega projects.
I cannot count how much taxes the developers have to pay... 5% + 25% (?) upon purchases and 25% ABSD with accumulated interest for the unsold units after 5 years.
The project risk for the mega enbloc is far too high financially. As such, all these will be RIP.
Now the owners will have great difficulties to find buyers, who need to be super cash rich. On top of this, renovation and maintenance are nightmare.
Govt will happily wait for the 99 years lease to expire.
When was the Government ever not in control???
It is good that the government is taking control of private land sale instead of leaving it to private developers like in Hong Kong which resulted in highly inflated asset prices. Perhaps, the government wants to narrow the price gap between private LH with aging HDB LH. This is to ensure more equitable wealth redistribution.
bargain hunter
08-07-18, 12:26
A new group of buyers will emerge in this market. They have been waiting very long le.
They will sell their HDB to buy.
We can watch this space closely.
the strange thing is last time after cooling measures, this group would hold back while now they go straight to the showflat. why?
the strange thing is last time after cooling measures, this group would hold back while now they go straight to the showflat. why?
Because this group have been waiting and hoping for many years that one day miracle will happen and CMs will teeak to their advantage. Never expect this round the tightening of LTV also affects them. So, what’s the motivation of waiting longer?
tonymontana
08-07-18, 12:51
First time buyers now quickly getting their private condo before govt decides to slap ABSD on them!
the strange thing is last time after cooling measures, this group would hold back while now they go straight to the showflat. why?
Last time can decouple, can wait.
Now cannot decouple, so those who aim to keep HDB would quickly pay up the 7% to buy at 80% financing. Can even arrange for ABSD remission later if desired, but must buy first.
Not forgetting that BSD was just recently raised.
Those who wait again, will either pay 12% with 75% financing to keep their existing PC or HDB, or arrange to sell their current place to finance buying as first time buyer with no ABSD payable.
They have got to hurry, as they will quickly find out that not only did they encounter more severe financing and downpayment conditions currently applicable, the price will continue to run (slowly) with the Government coming up with even more stringent and draconian measures ahead. It will not be long before Step 2 of Phase 2 cooling measures come. They always come as a chain...
Amber Woods
08-07-18, 14:00
the strange thing is last time after cooling measures, this group would hold back while now they go straight to the showflat. why?
If savvy investors here are jumping in than we have reasons to cheer. So is it still strange for this group to go straight into the showflat?
Quite clearly need to change the Govt in order to reverse these crazy rules. :sneakiness:
What is needed is a system to space out the enblocs, this will avoid the enbloc frenzy, allow older estates to regenerate and Developers another source of land.
Last time can decouple, can wait.
Now cannot decouple,
why now u cannot decouple?
I think he refer to couples who own one HDB matrimonial home. HDB does not allow decoupling now.
I think he refer to couples who own one HDB matrimonial home. HDB does not allow decoupling now.
this makes sense
stalingrad
08-07-18, 19:55
The new cooling measures will not prevent Singaporean families from owning two private condos. They will just have to own them singly, husbanding buying and owning one, and the wife buying and owning another. The new CMs change nothing.
The only effect of the CMs is to stop the en blocs. The effect is two folds, it would reduce demand in the short term but will reduce supply in the long run. So, the net effect is hard to tell. Also, the new CMs will make first time buyers jump in, as they now have a more powerful weapon, their first time buyer status, which is now more valuable than before the new CMs.
Going forward, the number of condos sold to couples would be down to zero. It is better to have two first time buyers in the family than just one.
This is the most moderate post I have read from you.
Steady.
The new cooling measures will not prevent Singaporean families from owning two private condos. They will just have to own them singly, husbanding buying and owning one, and the wife buying and owning another. The new CMs change nothing.
The only effect of the CMs is to stop the en blocs. The effect is two folds, it would reduce demand in the short term but will reduce supply in the long run. So, the net effect is hard to tell. Also, the new CMs will make first time buyers jump in, as they now have a more powerful weapon, their first time buyer status, which is now more valuable than before the new CMs.
Going forward, the number of condos sold to couples would be down to zero. It is better to have two first time buyers in the family than just one.
challenger
08-07-18, 21:07
Going forward, the number of condos sold to couples would be down to zero. It is better to have two first time buyers in the family than just one.
Will be reduced, but definitely not zero.
bargain hunter
08-07-18, 21:10
since the showflats are still crowded, that means demand is still strong (whether they decide now or later is another story but there certainly is demand). killing the en bloc removes the longer term supply. so the measures did not kill demand but killed supply?
does anyone know if developers who buy GLS have to pay the 5% non refundable absd? the articles i read only seemed to refer to residential PROPERTIES ie en bloc. it said nothing about government residential LAND sales sites sold.
stalingrad
08-07-18, 21:22
since the showflats are still crowded, that means demand is still strong (whether they decide now or later is another story but there certainly is demand). killing the en bloc removes the longer term supply. so the measures did not kill demand but killed supply?
does anyone know if developers who buy GLS have to pay the 5% non refundable absd? the articles i read only seemed to refer to residential PROPERTIES ie en bloc. it said nothing about government residential LAND sales sites sold.
Yes, that is the purpose of the CMs, to prop up the prices in the long run. rather than to see them plummet. So, if you are a property owner, the CMs actually will help you. And if are a long-term investors, the CMs give you more reasons to buy. That explains why the showflats are still full.
stalingrad
08-07-18, 21:38
since the showflats are still crowded, that means demand is still strong (whether they decide now or later is another story but there certainly is demand). killing the en bloc removes the longer term supply. so the measures did not kill demand but killed supply?
does anyone know if developers who buy GLS have to pay the 5% non refundable absd? the articles i read only seemed to refer to residential PROPERTIES ie en bloc. it said nothing about government residential LAND sales sites sold.
Also, don't be fooled by the headlines. The new cooling measures are not what the name suggests. They are actually blunt tools used by the government to stop the en bloc craze from spiralling out of control. The government cannot just say we don't want more en blocs, because that would alienate Singaporens.
En blocs are unhealthy. First, they are a waste of resources, with many perfectly fine housing blocs razed to make way for ones that are just newer but add no value to society. Second, en blocs lead to more mickey mouse condos, which in the long run are not a healthy thing to Singapore, which prefer to have larger family units. Third, en blocs and the ensuing tear-downs and rebuilding increase Singapore's carbon footprint.
In Australia, I encountered this principle which I believe the Govt is applying.
They do not allow foreigners to buy built property or property on existing housing stocks but will allow foreigner participation only if it increases total housing stock.
In the same respect, GLS allows us to further develop our land and housing stock while enbloc in general retains the housing area only, increasing housing stock through making smaller units only, other than the waste Stalingrad mentioned.
Where developers are concerned, be prepared that they will prefer GLS over enbloc sites going forward.
since the showflats are still crowded, that means demand is still strong (whether they decide now or later is another story but there certainly is demand). killing the en bloc removes the longer term supply. so the measures did not kill demand but killed supply?
does anyone know if developers who buy GLS have to pay the 5% non refundable absd? the articles i read only seemed to refer to residential PROPERTIES ie en bloc. it said nothing about government residential LAND sales sites sold.
In Australia, I encountered this principle which I believe the Govt is applying.
They do not allow foreigners to buy built property or property on existing housing stocks but will allow foreigner participation only if it increases total housing stock.
In the same respect, GLS allows us to further develop our land and housing stock while enbloc in general retains the housing area only, increasing housing stock through making smaller units only, other than the waste Stalingrad mentioned.
Where developers are concerned, be prepared that they will prefer GLS over enbloc sites going forward.
The Government know, they are pay millions to plan 10, 20 years ahead.
GFA/70 sqm is one of the measure they use to ensure enbloc in old development.
Just look at Matter GLS as an example unlike up North.
PropVestor
09-07-18, 12:37
There should be no property shocks brought upon internally until the next election 2020. Its all been planned.
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Based on your logic, the same is true for HDB SERS! - That is, HDB SERS
are unhealthy. First, they are a waste of resources, with many perfectly fine housing blocs razed to make way for ones that are just newer but add no value to society. Second, en blocs lead to more mickey mouse condos, which in the long run are not a healthy thing to Singapore, which prefer to have larger family units. Third, en blocs and the ensuing tear-downs and rebuilding increase Singapore's carbon footprint.
Also, we are seeing smaller and smaller HDB flats with every SERS (just like condos)!
Also, don't be fooled by the headlines. The new cooling measures are not what the name suggests. They are actually blunt tools used by the government to stop the en bloc craze from spiralling out of control. The government cannot just say we don't want more en blocs, because that would alienate Singaporens.
En blocs are unhealthy. First, they are a waste of resources, with many perfectly fine housing blocs razed to make way for ones that are just newer but add no value to society. Second, en blocs lead to more mickey mouse condos, which in the long run are not a healthy thing to Singapore, which prefer to have larger family units. Third, en blocs and the ensuing tear-downs and rebuilding increase Singapore's carbon footprint.
Based on your logic, the same is true for HDB SERS! - That is, HDB SERS
are unhealthy. First, they are a waste of resources, with many perfectly fine housing blocs razed to make way for ones that are just newer but add no value to society. Second, en blocs lead to more mickey mouse condos, which in the long run are not a healthy thing to Singapore, which prefer to have larger family units. Third, en blocs and the ensuing tear-downs and rebuilding increase Singapore's carbon footprint.
Also, we are seeing smaller and smaller HDB flats with every SERS (just like condos)!
HDB was never build to be big.
LKY is the one who want it Big, thus the NG,I,A,Jumbo.
Singapore is unlike oversea where they got lot of land, they can just move out from one Town and create another Town.
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