{"id":94193,"date":"2018-07-18T09:38:43","date_gmt":"2018-07-18T02:38:43","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/new-curbs-signal-end-of-quick-profit-making-from-property\/"},"modified":"2018-07-19T01:04:18","modified_gmt":"2018-07-18T18:04:18","slug":"new-curbs-signal-end-of-quick-profit-making-from-property","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/new-curbs-signal-end-of-quick-profit-making-from-property\/","title":{"rendered":"New curbs signal end of quick profit-making from property"},"content":{"rendered":"


\nA 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.
\nHomeowners generally make more profit in collective sales than by selling their homes individually in the resale market.
\nBut with the new measures \u2013 which took effect on 6 July 2018\u2013 property owners attempting to go en bloc will have to cut their asking price in order to seal a deal, given that the land acquisition cost for developers has significantly increased, explained Tay Huey Ying, Head of Research and Consultancy at JLL.
\nThis comes as developers face a 10 percentage-point increase in Additional Buyer\u2019s Stamp Duty (ABSD) as well as a five percent non-remissible ABSD when they purchase residential properties for development under the new curbs.
\nTay noted that the pace of collective sale was already waning even before the cooling measures took effect since developers had sufficiently replenished their land bank via collective sales in 2017 and in 1H 2018.
\nAnd while there is \u201cstill room for collective sale activity\u201d, the en bloc market is expected to slow down further, she said.
\nNonetheless, the slowing collective sales market may prove to be positive for the wider property market as it could lead to a reduction in unsold inventory \u2013 offering opportunities for the next wave of en bloc sales.
\nLooking ahead, Tay still expects private home prices to increase despite the new measures, although at a moderate pace only.
\n\u201cHistorically, home prices have been known to be notoriously resilient against downward forces,\u201d said Tay at an industry seminar organised by the Real Estate Developers\u2019 Association of Singapore (Redas).
\nHome prices, for instance, climbed by 30 percent between 2010 and 2013 even as the government had unveiled several rounds of cooling measures then. She noted that the drop in prices in 2013 was an \u201cinelastic downward\u201d shift of 11.6 percent over four years.
\nAccording to her, as long as there are no shocks to the economy, such as a full-blown trade war, Singapore\u2019s present environment of steady economic and employment growth can support a hike in prices in the near- to mid-term.
\nBut once \u201cprices threaten to run away\u2026the government will not hesitate to impose further measures\u201d, added Tay.
\n\u00a0
\nSenior Content Producer, Christopher Chitty, edited this story
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…New curbs signal end of quick profit-making from property<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

A senior property analyst believes the days of making quick money from property has come...<\/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-94193","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-ovf","jetpack-related-posts":[{"id":100382,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/sentiment-among-property-developers-down-on-july-cooling-measures\/","url_meta":{"origin":94193,"position":0},"title":"Sentiment among property developers down on July cooling measures","date":"October 23, 2018","format":false,"excerpt":"\r The latest round of cooling measures were described as unexpected and surprising, as well as extremely disruptive. Property cooling measures announced in July have dampened sentiment in the property market, with the Real Estate Sentiment Index (RESI) falling sharply to 4.0 in Q3 from 6.6 in Q2, reported the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":104187,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/redas-calls-on-government-to-tweak-property-cooling-measures\/","url_meta":{"origin":94193,"position":1},"title":"REDAS calls on government to tweak property cooling measures","date":"February 20, 2019","format":false,"excerpt":"\r Last year, the government raised the ABSD payable by developers from 15 percent to 30 percent, of which five percent is non-remittable. Real Estate Developers\u2019 Association of Singapore (REDAS) president Chia Ngiang Hong has urged the government to review the additional buyer\u2019s stamp duty (ABSD) policy to avoid the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":123833,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/singapore-unveils-new-property-cooling-measures\/","url_meta":{"origin":94193,"position":2},"title":"Singapore unveils new property cooling measures","date":"December 16, 2021","format":false,"excerpt":"\r Singapore unveils new property cooling measuresThe new Singapore property cooling measures, which include a higher ABSD, lower TDSR, and tighter LTV, will take effect from today, 16 December 2021. The Government on Wednesday (15 December) unveiled a package of measures to cool the private residential and HDB resale markets.\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/12\/Buildings-singapore.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":112995,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/cdl-chief-wants-absd-extension-to-ease-immense-pressure\/","url_meta":{"origin":94193,"position":3},"title":"CDL chief wants ABSD extension to ease "immense pressure"","date":"December 11, 2019","format":false,"excerpt":"\r (Above: The recently launched Sengkang Grand Residence by CDL) One of Singapore\u2019s largest developers, City Developments Ltd (CDL), has put the finger on the Additional Buyer\u2019s Stamp Duty (ABSD) levy imposed by the government\u00a0as the indirect cause of\u00a0the large property supply overhang in Singapore. According to the rules, developers\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":36522,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/developers-confident-of-selling-homes-before-absd-deadline\/","url_meta":{"origin":94193,"position":4},"title":"Developers confident of selling homes before ABSD deadline","date":"November 30, 2016","format":false,"excerpt":"\r The Venue Residences must be fully sold by September 2017 in order for CDL to avoid the ABSD charge. Despite the multi-million dollar fines involved if they fail to sell all their residential units within five years, property developers in Singapore are unlikely to cut home prices to attract\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":93763,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/developers-not-to-cut-prices-massively-but-will-be-more-flexible\/","url_meta":{"origin":94193,"position":5},"title":"Developers not to cut prices massively, but will be more \u201cflexible\u201d","date":"July 13, 2018","format":false,"excerpt":"\r Despite the government\u2019s introduction of new property cooling measures, developers have no plan of slashing home prices massively. GuocoLand group chief financial officer Richard Lai revealed that the company has \u201cno intention\u201d to cut property prices, although they will be \u201cmore flexible\u201d when selling homes that are less attractive\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\/94193"}],"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=94193"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/94193\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=94193"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=94193"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=94193"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}