Haha, Guess many get used to it already after so many rounds of CMs. Thus, no pulling back.
Today my fren tried to ask Developers if S&P can be delayed, affinity readily agrees and allows him to delay/re-issue by 1 year plus offering him a discount. Whereas PC gives him a straight no.
With this new cm, potential buyers will be even more strict in their choice of projects. Since paying additional tax, they will adopt a no compromise approach to their purchases. Location with good connectivity will still sell regardless of cm. Thats why garden and affinity even with discounts will not gain traction.
Cm now becomes like a barrier to entry. It's intended effect is gone and has become predictable to buyers. The general atmosphere now is if you don't buy now next time will be even more difficult to buy.
So thus encourage more buying instead.
The property market is the most inefficient market which can be easily manipulated by powerful developers as in the case now. Unlike the stock market where prices rise and fall base on easily market information by the click of a button, property price is extremely inelastic with information difficult to digest or even available. Hence, government's interventions are necessary to balance market's manipulation by private developers. View in this way, it is the private developers that are distorting the market cycle.
I always feel TDSR is a reasonable barrier and is enough to assess if buyer is financially over stretched.
The tightening of LTV and increasing of ABSD is just a short term deterrent which may Lead to more panic buying. If someone is willing to pay 7% ABSD in the past, what makes them think that future buyer wouldn’t pay 12% ABSD in the future? And yes, u r right, buyers will become more selective in their purchase.
All these are just increasing the dosage of painkiller w/o solving the issue.
Last edited by Xan; 08-07-18 at 12:02.
Developer has to adjust and chub pattern in order to survive under all the rulings.
They don’t manipulate the market.
https://www.facebook.com/photo.php?f...type=3&theater
still crowded today.
If totally leave it to private, we may become like HK. Developers are out to make profit, whether through strength or guile. They are not weak. How many of you have gone to a show room and noticed the tricks they play. For example, in the earlier days, show flats have no doors to make the place look bigger.
Government has other objectives and want to avoid big movements in prices. They probably realize that all the embloc happening at the same time will result in a spike in property prices, and want to control it.
I am sure the developers will think of ways to counter this move. In the immediate term, my guess is that more people will let go of their HDB when they upgrade to condo. There will be increase in supply of resale HDB, even those in prime area.
Isn’t it good..? Dump hdb for condo, and older hdb holds no value.
This call for further plunge in hdb prices.
Too bad the government has just taken away the last hobby Singaporeans had left, visiting showflats. Now back to boredom.
Now people visit car showrooms instead ha ha.