{"id":123856,"date":"2021-12-17T03:50:48","date_gmt":"2021-12-16T20:50:48","guid":{"rendered":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/harder-hitting-cooling-measures-to-affect-home-sales-en-bloc-market\/"},"modified":"2021-12-17T12:07:16","modified_gmt":"2021-12-17T05:07:16","slug":"harder-hitting-cooling-measures-to-affect-home-sales-en-bloc-market","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/harder-hitting-cooling-measures-to-affect-home-sales-en-bloc-market\/","title":{"rendered":"\u2018Harder hitting\u2019 cooling measures to affect home sales, en bloc market"},"content":{"rendered":"


\n\u2018Harder hitting\u2019 cooling measures to affect home sales, en bloc marketThe new Singapore property cooling measures might see a slow down in the new home sales for December and curbed momentum in the en bloc market.
\nAnalysts expect the latest property cooling measures, which describe as \u201charder hitting\u201d, to slow price growth and home sales as well as significantly hamper the en bloc market, reported Channel News Asia (CNA).
\nDespite signs of the market heating up, the \u201cdecisiveness\u201d with which the cooling measures were imposed was unexpected. Notably, they were announced about 25 minutes before they take effect on 16 December.
\nThe measures include higher Additional Buyer\u2019s Stamp Duties (ABSD), tighter Loan-to-Value (LTV) limits and lower Total Debt Servicing Ratios (TDSR).
\nMuch like previous cooling measures, Huttons Asia\u2019s Senior Director of Research Lee Sze Teck expects to see a \u201cknee jerk reaction immediately as everyone tries to understand and assess the impact\u201d.
\nThis means new home sales for December may slow to between 400 and 600 units, and volume could ease for the next few quarters in 2022, he said.
\nTricia Song, Head of Research for Southeast Asia at CBRE, expects next year\u2019s new home sales to \u201ctrend down from the current 13,000 units to a normalised 9,000 to 10,000 units\u201d.
\nShe expects prices to be flat, or increase by 1% to 3% in 2022.
\nWhile volume may taper off, Edmund Tie CEO Desmond Sim does not expect the measures to cause \u201ca total nullification of enquiries\u201d since there are still genuine buyers within the market.
\nThe new measures are also expected to affect the en bloc market, which appeared to have gained momentum recently.
\nUnder the new rules, entities purchasing residential properties must pay 35% ABSD, up from 25% previously, if they could not sell all their units within five years. Developers also face an additional 5% non-remittable ABSD.
\nColliers Managing Director Tang Wei Leng said developers would have to consider the \u201cadditional tax impact and buyers\u2019 concerns about the future selling prices, as well as how these will affect demand and the take-up rate\u201d.
\nEn bloc hopefuls, on the other hand, will have to review their expectations since it may take longer to \u201cmanage and negotiate the price gap\u201d resulting from the new measures.
\nThe new measures will see developers become more selective with their land acquisitions, said Professor Sing Tien Foo from the National University of Singapore\u2019s (NUS) Institute of Real Estate and Urban Studies.
\n\u201cThe bigger plots will get more and more difficult (to work with) because of the 35% ABSD. To sell big projects \u2013 above 500 units \u2013 is quite challenging,\u201d he said as quoted by CNA.
\nSim, however, believes the new curbs have not entirely \u201ckilled\u201d the en bloc market, saying that a project may still be sold en bloc if its pricing and location are attractive.
\nLooking for a property in Singapore? Visit PropertyGuru\u2019s\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\nCheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email:\u00a0cheryl@propertyguru.com.sg.
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…\u2018Harder hitting\u2019 cooling measures to affect home sales, en bloc market<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

\u2018Harder hitting\u2019 cooling measures to affect home sales, en bloc marketThe new Singapore property cooling...<\/p>\n","protected":false},"author":1,"featured_media":123857,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-123856","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-news"],"jetpack_featured_media_url":"https:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/12\/HDB-RESALE-PRICES.jpg?fit=820%2C410&ssl=1","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-wdG","jetpack-related-posts":[{"id":99790,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/property-cooling-measures-decimated-en-bloc-sales-market\/","url_meta":{"origin":123856,"position":0},"title":"Property cooling measures decimated en bloc sales market","date":"October 11, 2018","format":false,"excerpt":"\r Two en bloc redevelopment sales worth $353 million were completed in the third quarter, way lower than the $3.8 billion registered during the previous quarter, data shows.\u00a0 Singapore\u2019s latest round of property cooling measures proved effective in cooling its red-hot collective sales market. In fact, only two en bloc\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":97824,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/fewer-en-bloc-transactions-expected-for-the-rest-of-2018\/","url_meta":{"origin":123856,"position":1},"title":"Fewer en bloc transactions expected for the rest of 2018","date":"September 14, 2018","format":false,"excerpt":"\r There was about $10.5 billion worth of en bloc deals in the first half of 2018. With the en bloc fever driving real estate activity in the first half of the year, the government\u2019s surprise property cooling measures in July dealt a huge blow on the bullish collective sales\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":108720,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/one-year-on-how-the-cooling-measures-came-and-shook-up-the-housing-market\/","url_meta":{"origin":123856,"position":2},"title":"One Year On: How The Cooling Measures Came And Shook Up The Housing Market","date":"July 4, 2019","format":false,"excerpt":"\r Today marks exactly one year since the Government dropped the surprise announcement that it was raising Additional Buyer\u2019s Stamp Duty (ABSD) rates and tightening Loan-To-Value (LTV) limits just after 7pm on July 5. The measures, which took effect the next day, came as a surprise, arriving just as property\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2019\/07\/higher-absd-rates.png?fit=851%2C617&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":101756,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/cooling-measures-dampened-buying-sentiment-in-q3-report\/","url_meta":{"origin":123856,"position":3},"title":"Cooling measures dampened buying sentiment in Q3: report","date":"November 28, 2018","format":false,"excerpt":"\r En bloc sales in Singapore have come to a halt while residential sales have also suffered. The government\u2019s latest round of property cooling measures dampened buying sentiment in the private residential market during the third quarter of 2018, said Edmund Tie & Company (ET&Co) in a report. This comes\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":119988,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/ministerial-comments-rising-prices-spark-talk-of-additional-property-cooling-measures\/","url_meta":{"origin":123856,"position":4},"title":"Ministerial comments, rising prices spark talk of additional property cooling measures","date":"January 20, 2021","format":false,"excerpt":"\r Ministerial comments, rising prices spark talk of additional property cooling measuresMinister Desmond Lee\u2019s urge for Singaporeans to exercise prudence when acquiring property\u00a0and the recent rise in\u00a0private home prices have experts\u00a0believing them as signals for another round of cooling measures. Analysts consider recent ministerial remarks on the property market as\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/01\/Residential-apartments-in-Singapore-v2.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":94193,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/new-curbs-signal-end-of-quick-profit-making-from-property\/","url_meta":{"origin":123856,"position":5},"title":"New curbs signal end of quick profit-making from property","date":"July 18, 2018","format":false,"excerpt":"\r A senior property analyst believes the days of making quick money from property has come to an end with the release by the government of its latest round of property cooling measures, reported Today Online. Homeowners generally make more profit in collective sales than by selling their homes individually\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/123856"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=123856"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/123856\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media\/123857"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=123856"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=123856"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=123856"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}