No rationale for new property cooling measures, says REDAS

Christopher Chitty9 Jul 2018

The Real Estate Developers’ Association of Singapore (REDAS) sees no rationale in imposing new property cooling measures considering that the Singapore property market is still in the “early stages of a recovery and the recovery is in line with economic fundamentals”, reported Channel News Asia.

Among the new curbs imposed by the government are a five percentage point increase in Additional Buyer’s Stamp Duty (ABSD) rates for Singapore citizens and permanent residents (PRs) purchasing their second homes and a five percentage point tightening for loan-to-value (LTV) limits for all residential property loans granted by financial institutions.

REDAS noted that Singapore’s property market began to see improved sentiments last year, on the back of brighter economic forecasts. The Singapore economy grew 3.5 percent by end-2017 and 4.4 percent during the first quarter of 2018.

Nonetheless, the sale transaction volume is not high and remained within market expectation given that the property market had been in the doldrums since 2013, it said.

This comes as buyers remained price-sensitive as the existing sizable ABSD (Additional Buyer’s Stamp Duty) and TDSR (Total Debt Servicing Ratio) continued to restrain foreign buyers and Singaporeans.

With this, the industry body feels that the property market “should be allowed time to find its own course and reach a sustained equilibrium”.

REDAS does not also see the need to impose additional measures on developers.

“As is, in the purchase of sites from the GLS (Government Land Sales) programme or private collective sites to replenish their land bank to keep operations going, developers are constrained by a confluence of financial considerations as well as tough and unfriendly business policies including the existing ABSD on developers and the Qualifying Certificate (QC) punitive conditions on majority of developers (who are deemed foreign companies),” it said.

“It is in the interest of the country to have a vibrant real estate industry and a steady growth in real estate value for home owners and investors in the long term.”


Senior Content Producer, Christopher Chitty, edited this story.

Jul 10, 2018
On the contrary, its probably a good move to keep property prices affordable for the majority, who're buying for their occupancy by preventing property investors from driving up the market.
Jul 09, 2018
I think the Government is just trying to follow Hong Kong but it does not realise in spite of all the cooling measures imposed by HK Government, the prices still keep moving up. One can not stop the market forces
Corine Kong
Jul 09, 2018
From past data, it shows that ABSD is not an effective way to cool the market except for the short term knee jerk reaction. The TDSR is seen to be effective Is the true purpose of ABSD to cool the market or to increase the government 's coffers even more?
Lee Han Sing
Jul 09, 2018
For the Latest Shocking New Measurements : To Cage a Tiger
Chua Dicksen
Jul 09, 2018
They need to increase the bonuses and salaries. Where to get it from? Property market lor.. Take whatever until the next election..

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