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Thread: Showflats quiet as new cooling measures kick in

  1. #1
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    Default Showflats quiet as new cooling measures kick in

    http://www.businesstimes.com.sg/prem...-kick-20130114

    Published January 14, 2013

    Showflats quiet as new cooling measures kick in

    Curbs effective on Saturday includes higher stamp duty, stricter loan limits

    By Mindy Tan


    [SINGAPORE] Showflats were quiet yesterday, following a surge of customers last Friday eager to beat the new cooling measures which kicked in on Saturday.

    The government announced its seventh and most sweeping package of property cooling measures on Friday, including higher additional buyers' stamp duty as well as stricter borrowing limits.

    The executive condominium (EC) market, which has recently been in the limelight due to the increasing size and quantum of certain EC units, was one of the segments cut down to size.

    According to the new rules, new units cannot exceed 160 square metres. In addition, private enclosed spaces and private roof terraces will be counted as part of the 10 per cent bonus gross floor area (GFA).

    Previously, developers of non-landed private projects and ECs did not have to pay development charges for sky terraces as they were not treated as part of the GFA.

    CityLife@Tampines - which saw the sale of a 4,349 sq ft penthouse unit, including a 1,600 sq ft roof terrace at $2.05 million last month - sold only two units yesterday.

    The 514-unit project, which opened for bookings on Dec 29 with average prices of $770 per square foot, had only 20 three-bedroom units left for sale.

    On the latest measures aimed at the EC market, National Development Minister Khaw Boon Wan noted that the size and pricing of EC units had previously been "quite moderate, and very much in keeping with what the market thinks the target buyers can afford".

    "But when they start exceeding 200 sq m, and cost a couple of million dollars, one should legitimately ask how a family in the $12,000 income group can afford such a unit . . . (With the new measures) we've limited the EC size that developers can build (which) will automatically bring the price down."

    International Property Advisor chief executive Ku Swee Yong demurred, arguing that the government should have capped prices instead of sizes.

    He added: "Roof terraces and private enclosed spaces are now part of your GFA, but why should the review solely focus only on roof terraces and private enclosed spaces? What about developers who sell a 1,000 sq ft apartment with 30 sq ft of aircon ledges? What about voids? Double-volume units make your dollar psf seem cheap, but this fools many investors."

    Instead, the government could consider introducing a ratio for balcony space to interior space, he suggested.

    The showflats of two newly launched projects along Pasir Panjang - the 52-unit SeaSuites and 148-unit Village - were quiet as well.

    According to marketing agents for SeaSuites, only eight units were unsold, of which half were three-bedroom configurations.

    Selangor Dredging's Village, on the other hand, still had about 30 per cent of its units available for sale. The developer is offering an early bird discount of 15 per cent, a vicinity and stamp duty discount of 3 per cent each, and an additional 3 per cent discount for select units.

    "Transaction volume for this month will definitely fall . . . but next month should have some recovery because in the medium term, everybody with some extra cash is already thinking, can I buy a unit in my child's name?" said Mr Ku.

    "The other issue that will pan out over the next two weeks is that some of the buyers who put in cheques on Friday night will realise that no matter how much they stretch their finances, they can't meet the requirements. So there will be some cancellations."

  2. #2
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    Default Fewer visitors at showflats as new property rules bite

    http://www.straitstimes.com/archive/...-bite-20130113

    Fewer visitors at showflats as new property rules bite

    First-time home buyers cheer measures; some developers push out offers to ease the pain

    Published on Jan 13, 2013

    By Esther Teo & Melissa Pang


    Showflats across the island took an immediate hit a day after a slew of tough property cooling measures were unveiled.

    Friday saw the introduction of a range of measures including higher additional buyers' stamp duty as well as stricter borrowing limits.

    The number of buyers visiting showflats of eCo in Bedok South, d'Leedon on the former Farrer Court site and Echelon next to Redhill MRT station had thinned.

    The notable exception, however, was La Fiesta, next to Sengkang MRT station, which was still very busy, with many buyers flocking to its showflat along Sengkang Square, undaunted by the seventh and most extensive round of measures.

    The 810-unit project had scrambled to bring forward its launch to Friday night from its original launch date this Tuesday to beat the clock on the new measures.

    The Sunday Times understands that the project has sold "a few hundred units" at average prices of between $1,100 and $1,200 per sq ft.

    Those scouting around at the showflats said they were hoping that developers might have lowered prices. The measures target investor demand and do not affect first-time home buyers.

    Senior financial consultant Edmund Wee, 44, who was at the d'Leedon showflat, said he is happy with the measures as he is a "genuine" home buyer. He has been renting an apartment for the past eight months.

    "(The measures) will benefit those who are not using property as investment... We won't be buying immediately, but will be shopping around the next few months, when the impact of the measures can be seen," he added.

    At d'Leedon, Ms Juvian Cheah, 37, was cheered by the latest measures.

    "As someone who is single and in my 30s, and looking for a place of my own, I'm very happy with the cooling measures and I hope it will keep speculators out of the market and calm prices down," she said.

    First-time home buyer Ms Hong, who declined to give her full name, was also at d'Leedon. The 30-year-old said she has been shopping for a home for the past year but has been put off by the prices.

    "Hopefully, this round of cooling measures will help. I'm not sure it addresses some of the key problems, such as the issue of cash-rich foreigners, but it's a start.

    "It also remains to be seen whether the increase in the quantum of the stamp duty is sufficient, and whether the measures will stamp out Singaporeans' desire to use property as a means of investment," she added.

    Those who were looking for an investment property, however, were disheartened.

    Accountant Mark Hew, 41, said he was originally interested in buying a home for investment and visited the La Fiesta showflat to get a feel for the market.

    But the tough new measures, which include higher stamp duties and rules limiting buyers on how much they can borrow, have put his plans on hold.

    "I'm not buying any more... The higher cash down payment is the main deterrent for us," he said.

    Some developers pushed out new promotions in a bid to alleviate the sting of the measures.

    Far East Organization, for instance, is offering a 5 per cent discount across the board for all its projects this weekend. The developer also kept some of its showflats open till late on Friday night.

    Mr Chia Boon Kuah, Far East's chief operating officer of property sales, said 38 units were sold at its projects on Friday.

    The limited-period discount of 5per cent this weekend is also meant to "assist buyers who had been considering our properties, but were not able to act before the latest round of measures took effect", he added.

    "We will continue to monitor the situation and respond to the needs of home buyers, to contribute to stable and sustainable value in the property assets of end users and investors in Singapore," Mr Chia said.

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