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Thread: Raising ABSD for second homes among new property-cooling measures announced

  1. #91
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    Quote Originally Posted by jwong71 View Post
    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.

  2. #92
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    Quote Originally Posted by bargain hunter View Post
    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

  3. #93
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    Quote Originally Posted by jwong71 View Post
    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.

  4. #94
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    Haha, so typical of the PAP. Get used to it, it is just how they operate as the master class of Singapore.

  5. #95
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    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."

  6. #96
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    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?

  7. #97
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    Quote Originally Posted by Khng8 View Post
    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.

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    But these buyers still have not pay ABSD rt?

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    A very interesting observation on the ABSD. I suppose buyers can either save up the additional 5% or sell their existing houses.

  10. #100
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    Quote Originally Posted by Khng8 View Post
    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%.

  11. #101
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    Quote Originally Posted by Khng8 View Post
    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

  12. #102
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    Anyway developers have the money, and the ideas. Just if they want or not to do new packaging

  13. #103
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    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.

  14. #104
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    Maybe Analysts were also planning to buy?

    Quote Originally Posted by Pynchmail View Post
    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.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

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    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.

  16. #106
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    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.

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    Quote Originally Posted by Tomutomi View Post
    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.

  18. #108
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    Yah, make sense to have defer payment

  19. #109
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  20. #110
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    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/prop...ayment-schemes

  21. #111
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    Quote Originally Posted by Laguna View Post
    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.

  22. #112
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    Quote Originally Posted by Laguna View Post
    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.

  23. #113
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    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.

    Quote Originally Posted by Laguna View Post
    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.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

  24. #114
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    When was the Government ever not in control???

    Quote Originally Posted by Amber Woods View Post
    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.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

  25. #115
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    Quote Originally Posted by Kelonguni View Post
    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?

  26. #116
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    Quote Originally Posted by bargain hunter View Post
    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?

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    First time buyers now quickly getting their private condo before govt decides to slap ABSD on them!

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    Quote Originally Posted by bargain hunter View Post
    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...
    Last edited by Kelonguni; 08-07-18 at 13:26.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

  29. #119
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    Quote Originally Posted by bargain hunter View Post
    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?

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    Quote Originally Posted by august View Post
    Quite clearly need to change the Govt in order to reverse these crazy rules.
    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.

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