{"id":93895,"date":"2018-07-16T10:57:44","date_gmt":"2018-07-16T03:57:44","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/developers-may-slash-prices-up-to-10-amid-new-curbs\/"},"modified":"2018-07-16T11:03:36","modified_gmt":"2018-07-16T04:03:36","slug":"developers-may-slash-prices-up-to-10-amid-new-curbs","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/developers-may-slash-prices-up-to-10-amid-new-curbs\/","title":{"rendered":"Developers may slash prices up to 10% amid new curbs"},"content":{"rendered":"


\nBased on their response on the government\u2019s new property cooling measures, developers are expected to cut prices of new launches by up to 10 percent, with prices for high-end homes likely to witness bigger adjustments, reported The Business Times.
\nIn fact, some analysts have already priced in a five to 10 percent reduction in average selling prices (ASP) in their forecasts when they downgraded stock ratings for several developers.
\n\u201cWhile we expect a moderation in EBIT (earnings before interest and tax) margins to single digits for most projects, we do not see any developer losing money,\u201d said Maybank Kim Eng analyst Derrick Heng, who priced in a five to 10 percent reduction in ASP in his projections.
\nTo account for the lower loan-to-value (LTV) limits and higher additional buyer\u2019s stamp duty (ABSD), developers would need to revise their prices by at least five percent, if not more, said DBS Bank analyst Derek Tan.
\nTan noted that potential write-offs to land values on the balance sheets of developers is not a near-term risk, but \u201ccould emerge a couple of years later if sales momentum falters\u201d.
\nSo far, developers have not yet provided huge discounts, though \u201cprice discounts\u201d of three to seven percent from earlier price lists have been offered for certain projects.
\nChristine Sun, research head at OrangeTee & Tie, expects this trend to continue since most developers have strong holding power and deep pockets.
\nJLL national research director Ong Teck Hui believes that the ASPs for mass-market new launches would be \u201ctwo to five percent less aggressive than originally intended\u201d, while adjustments for high-end homes would likely be higher.
\nSome developers, who spoke on condition of anonymity, said slashing prices by five to 10 percent may be possible for projects with sufficient margin buffers, but not for those built on land acquired at costlier rates.
\n\u201cGiven that the cost of production is high due to the land cost element, there is little room for many to manoeuvre on the selling price front. Hence, any adjustments will at best be marginal or nothing at all,\u201d said Savills Singapore senior director Alan Cheong.
\n\u00a0
\nSenior Content Producer, Christopher Chitty, edited this story.\u00a0
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Developers may slash prices up to 10% amid new curbs<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Based on their response on the government\u2019s new property cooling measures, developers are expected to...<\/p>\n","protected":false},"author":1,"featured_media":0,"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-93895","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-oqr","jetpack-related-posts":[{"id":137922,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/property-sales-launch-called-off-at-aruna-project-in-ap-lei-chau-as-hong-kong-developers-cut-prices-for-new-homes\/","url_meta":{"origin":93895,"position":0},"title":"Property sales launch called off at Aruna project in Ap Lei Chau, as Hong Kong developers cut prices for new homes","date":"June 24, 2023","format":false,"excerpt":"\r The first-round sales of Aruna, priced more aggressively than other recent launches, were abruptly called off just hours before it was set to kick off on Saturday.\r \r Source : South China Morning Post\r Read more...Property sales launch called off at Aruna project in Ap Lei Chau, as Hong\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":89039,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hong-kong-developers-raise-prices-of-flats-by-up-to-70-per-cent-as-record-kai-tak-land-sale-boosts-confidence\/","url_meta":{"origin":93895,"position":1},"title":"Hong Kong developers raise prices of flats by up to 70 per cent as record Kai Tak land sale boosts confidence","date":"May 22, 2018","format":false,"excerpt":"\r Hong Kong developers are raising the prices of their unsold units by as much as 70 per cent in a sign that the world\u2019s hottest property market is a long way from running out of steam. Kerry Properties has priced a flat at The Bloomsway in Tuen Mun at\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":36250,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-developer-damac-cuts-off-plan-prices-to-attract-property-buyers\/","url_meta":{"origin":93895,"position":2},"title":"Dubai developer Damac cuts off-plan prices to attract property buyers","date":"November 28, 2016","format":false,"excerpt":"\r Property developers in Dubai are marketing cut-price off-plan properties to tempt buyers back into the market.Villas at Damac's latest off-plan development are being marketed at Dh200,000 less than they were a month ago.At a marketing launch at the end of October, Dubai developer Damac announced that it would be\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":36258,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/lower-off-plan-prices-to-stoke-demand-in-dubai\/","url_meta":{"origin":93895,"position":3},"title":"Lower off-plan prices to stoke demand in Dubai","date":"November 28, 2016","format":false,"excerpt":"\r Property developers in Dubai are marketing cut-price off-plan properties to tempt buyers back into the market.Villas at Damac's latest off-plan development are being marketed at Dh200,000 less than they were a month ago.At a marketing launch at the end of October, Dubai developer Damac announced that it would be\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":36356,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/lower-off-plan-prices-to-stoke-property-demand-in-dubai\/","url_meta":{"origin":93895,"position":4},"title":"Lower off-plan prices to stoke property demand in Dubai","date":"November 28, 2016","format":false,"excerpt":"\r Property developers in Dubai are marketing cut-price off-plan properties to tempt buyers back into the market.Villas at Damac's latest off-plan development are being marketed at Dh200,000 less than they were a month ago.At a marketing launch at the end of October, Dubai developer Damac announced that it would be\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":103120,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/homebuyers-spring-into-action-after-developers-slash-prices-cutting-inventory-as-market-outlook-darkens\/","url_meta":{"origin":93895,"position":5},"title":"Homebuyers spring into action after developers slash prices, cutting inventory as market outlook darkens","date":"January 20, 2019","format":false,"excerpt":"\r Wing Tai Properties, the Hong Kong unit of Singapore developer Wing Tai Holdings, sold more than 90 per cent of its flats on offer at Tuen Mun on Sunday, with some units priced as low as HK$9,488 per square foot (US$1,210), reflecting the weakest level seen in the neighbourhood\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\/93895"}],"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=93895"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/93895\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=93895"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=93895"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=93895"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}