Looking into the impact of the latest round of property cooling measures, the Real Estate Developers’ Association of Singapore (REDAS) has engaged in series of meetings with various industry players, according to The Business Times.
REDAS met recently with stakeholders such as property consultants, lawyers, developers and brokerage analysts to discuss the intended objectives and consequences of the latest cooling measures, which include the 10 percent additional buyer’s stamp duty (ABSD) for foreigners.
The report noted that several suggestions over a more “calibrated” approach were raised at the meetings, including some proposals set to be presented to the authorities.
One idea that emerged was identifying “hot spots” for foreign investments using the postal district codes and applying tiered stamp duties.
Almost 29 percent of private homes in the Core Central Region (CCR), including Marina Bay, Sentosa Cove and prime districts 9, 10 and 11, have been purchased by foreigners, according to a recent CBRE analysis of URA’s caveat data lodged from January to November 2011.
On the other hand, only 14 percent in the Outside Central Region (CCR) were sold to foreigners.
Industry players also suggested that the authorities could give more incentives to support PRs and Singapore citizens by providing more generous subsidies to first-time homebuyers, for instance, instead of singling out foreigners.
On whether the ABSD will be permanent, Joseph Tan, Executive Director for Residential at CBRE, said that “these measures are unlikely to be a permanent feature because of the nature of Singapore’s highly open economy.”