View Full Version : What developers do or will do post 8 Dec 2011 CM
I hope people will contribute to this threat what developers are doing or will be doing to counter 8 Dec 2011 CM. All indicators are that prices will fall and the question is how much and how soon How are developers going to react and how would be buyers will react. Any known confirmed deals cancelled since yesterday 8 pm? Please fill in here.
Amber Woods
08-12-11, 11:47
SINGAPORE: At least one real estate agency thinks the immediate reaction to the latest cooling measures will be a slowdown in the private property market.
CEO of PropNex Realty Mr Mohamed Ismail said he expects a price correction of approximately 15 to 20 per cent in the central core region and a correction of 10 to 15 per cent in the mass market segment in the next six months.
Propnex also expects transaction volume to dive by as much as 40 per cent in the core central region and by as much as 20 per cent in the mass market segment.
Under the latest changes, foreign buyers of private properties in Singapore will now have to fork out 10 per cent more in stamp duty while permanent residents and Singaporeans are also affected with an increased stamp duty on their second and third properties respectively.
Propnex said the new measures could have been targeted to preserve affordable pricing in the mass market segment - homes costing less than S$2 million where prices have surpassed S$1,000 psf.
It argues that having a blanket policy will impact the high-end market which has been the investment interest of the foreign buyers.
- CNA/ck
It will lead to mad rush until 28 Dec by sellers because after which they have to build in discounts of at least 3% up to 10% to cover ABSD... so meanwhile they may mark down by say 1% to entice buyers to commit fast.
Maybe all the developers shut down all showflats for 3 months as a protest to the new policy. :p
It will lead to mad rush until 28 Dec by sellers because after which they have to build in discounts of at least 3% up to 10% to cover ABSD... so meanwhile they may mark down by say 1% to entice buyers to commit fast.
Yeah, but who's going to buy? ;)
Developers up prices by 11% and then give upfront 10% discount so they are actually selling at 99.9% of current price... :D
Amber Woods
09-12-11, 08:01
As reported in the ST today, developers are offering agents $5000 to $15000 per unit sold on top of their commission to get buyers to exercise their options for the new launches at Bedok. I doubt it will work. If property prices are going to fall by 20 %, why bother to exercise now? Buyers could easily buy lower at a later time. Desperate move during desperate time.
Bascially saying that developer cannot drop price but ask agent to give discount to the buyer unofficially.:D
devilplate
09-12-11, 08:10
As reported in the ST today, developers are offering agents $5000 to $15000 per unit sold on top of their commission to get buyers to exercise their options for the new launches at Bedok. I doubt it will work. If property prices are going to fall by 20 %, why bother to exercise now? Buyers could easily buy lower at a later time. Desperate move during desperate time.
buyers SHOULD demand at least 20% discount....if not DUN EXERCISE!!!!!!!!!!!!!!!!!
Zaobao says some developer of landed may offer 10% discount or absorption of stamp duty for foreign buyers. Is great being a foreigner in spore. :p
devilplate
09-12-11, 08:52
Zaobao says some developer of landed may offer 10% discount or absorption of stamp duty for foreign buyers. Is great being a foreigner in spore. :p
foreigners can buy landed meh??
WTF!!!!!!!!!????????????
buyers SHOULD demand at least 20% discount....if not DUN EXERCISE!!!!!!!!!!!!!!!!!Wait another 3 months, can demand for 30% discount from current price liao... Lol! :D
At most developers absorb the extra stamp duty from those affected parties lor.. Better than no sales right? Since foreigners as well as those 2nd time 3rd time sg/pr buyers accounted not too much of the buying. If I m the developer, I will do that tho, provided it didn't cost me to make a loss instead..
If I m the developer, I will do that tho, provided it didn't cost me to make a loss instead..
Ya lor, developers can jack up prices by 3% to 10% and say they will absorb the ABSD just for you. Sweet.:)
Ya lor, developers can jack up prices by 3% to 10% and say they will absorb the ABSD just for you. Sweet.:)
If that is reali the case, this cooling measures did not really punish the foreigners, more of punishing the developer for making so much profit all along :doh: No wonder no consultation with redas la haha...Developers cham.
devilplate
09-12-11, 11:16
If that is reali the case, this cooling measures did not really punish the foreigners, more of punishing the developer for making so much profit all along :doh: No wonder no consultation with redas la haha...Developers cham.
developers aso kena ABSD if they cant clear all units within 5yrs hor....i tink this one more jialat
whahahahaha
Regulators
09-12-11, 11:23
First time singapore buyers of pte pty, singaporean buyers of second property and first time pr buyers form a big bulk of mass market condo buyers, so I do not think the impact will be that big for mass market segment. For mass market, we won't be seeing much of foreign buyers anymore. For prime district ptys, I think they will suffer the biggest hit with most of the buyers being foreigners. I think if we are looking at good deals down the road, it could be in the prime districts.
devilplate
09-12-11, 11:25
First time singapore buyers of pte pty, singaporean buyers of second property and first time pr buyers form a big bulk of mass market condo buyers, so I do not think the impact will be that big for mass market segment. For mass market, we won't be seeing much of foreign buyers anymore. For prime district ptys, I think they will suffer the biggest hit with most of the buyers being foreigners. I think if we are looking at good deals down the road, it could be in the prime districts.
in line wif my strategy of getting ccr ppty.....viva/1devon ;)
Regulators
09-12-11, 11:27
can consider espada as well
in line wif my strategy of getting ccr ppty.....viva/1devon ;)
devilplate
09-12-11, 11:29
can consider espada as well
if budget allows, better hoot bigger unit during downcycle :)
Regulators
09-12-11, 11:34
The rental yield for prime district sucks, I think two bedr is max I will go for ccr. If I hoot bigger unit and can't rent out, would be a problem
if budget allows, better hoot bigger unit during downcycle :)
devilplate
09-12-11, 11:36
The rental yield for prime district sucks, I think two bedr is max I will go for ccr. If I hoot bigger unit and can't rent out, would be a problem
ic...2bdr is just fine.....i just find espada layout and size disgusting
if budget allows, better hoot bigger unit during downcycle :)
apt 1500sqft and above
landed 4000sqft and above
:D:D:D
It is apparent that developers are meeting daily to discuss any promotional gimmick or new pattern to entice potential buyers to their showflat again... Sat will be more evident. The new condo to be launched at Seng Kang, Riversound is currently chocking on their launch price after Wed night's announcement... Hmmm... what's next? :eek:
Wait for 2-3 years, can demand 60% discount from current price! :D
Wait another 3 months, can demand for 30% discount from current price liao... Lol! :D
developers aso kena ABSD if they cant clear all units within 5yrs hor....i tink this one more jialat
whahahahaha
This one really jialat. Dunno how does it work? Is the ABSD payable on the land purchase price or only on the remaining unsold units? If its on land purchase price, we could see big lelong leh......
Whatever the case, its not a big problem to sell remaining units lah... only fill up some names and transacted price. No need for real money transfer lah.. developers can manage that easily de... then continue selling these units as resale lor... :cheers5:
Whatever the case, its not a big problem to sell remaining units lah... only fill up some names and transacted price. No need for real money transfer lah.. developers can manage that easily de... then continue selling these units as resale lor... :cheers5:
Err...that is illegal leh.....later bao1 toh1 by competitors how? Does that mean if CM 5 stay, Far East cannot be landlord using its official name liao? Maybe Far East can circumvent by setting up another subsidiary to buy the remaining units? Needs to pay the 10% ABSD on the remaining units though...... LOL
phantom_opera
09-12-11, 17:26
Does the rule to clear all units in 5y apply only to new projects or existing projects? Imagine FEO has so many units not cleared yet ... sweat :jaw-dropping:
FEO does not face this problem bcos it is not a listed company. This is why it could hold on to its units without selling for as long as it likes. There is a brief explanation of this in today's papers. ;)
phantom_opera
09-12-11, 17:28
FEO does not face this problem bcos it is not a listed company. This is why it could hold on to its units without selling for as long as it likes. There is a brief explanation of this in today's papers. ;)
You mean it applies to any listed companies with existing stocks ? How about those lands bought by CDL many years go in Pasir Ris and Flora road area?
Business Times
http://www.businesstimes.com.sg/sub/news/story/0,4574,469019,00.html
Published December 9, 2011
New terms may hit large collective sales
To avoid paying ABSD, developers must build, sell all units on residential sites within 5 years
By KALPANA RASHIWALA
(SINGAPORE) The latest measures unveiled by the government are expected to have major implications for developers buying residential land, especially involving collective sale sites. They will have to develop any residential sites they buy from Dec 8 and sell all the units in the new project within five years - if they want to avoid paying the new 10 per cent additional buyer's stamp duty (ABSD).
'This can be very onerous especially when the property market is slow,' said Credo Real Estate executive director Ong Teck Hui.
Drew & Napier head of tax practice Ong Sim Ho said: 'For developers, it has become more difficult and costly to land bank.' He suggested one intention of the new rule could be to give more certainty to supply numbers on the completion of private homes.
Information in the Inland Revenue Authority of Singapore e-tax guide on the ABSD indicates that the new 10 per cent ABSD is payable by corporate entities buying vacant land and development sites for residential use - although they can apply for upfront remission if the buyer (developer) undertakes to develop and dispose of all units in the new development (which must have more than four residential units) within five years of the date of contract or agreement to buy the site, among other conditions.
If this condition is not met, the ABSD (with interest) becomes payable immediately upon the expiry of five years. The residential sites include Government Land Sales (GLS) plots and private-sector sites including en bloc sales.
Market watchers say that with the five-year limit to complete the project and sell all units, developers will have to weigh their land purchase decisions more carefully.
'They must be confident of developing the project and disposing of all residential units in it within five years - taking into account the possibility of any turn in market conditions and in the case of en bloc sales, the risk of a possible delay in court approval,' says Lee Liat Yeang, partner in real estate practice group at law firm Rodyk & Davidson.
For en bloc sales, the date of contract or agreement refers to the date when the site is awarded by the Sales Committee. From this point, it can take six to 12 months or even longer for legal completion of the site's purchase (including court approval of the en bloc sale).
This additional time eats into the five-year limit the developer has to complete building the new residential project on the site and selling all the units, said Mr Lee.
But for sites bought through the GLS programme, the impact will be less as there is certainty that the legal completion of the land purchase will take place by the 90th day of the site's award (the latter is deemed date of contract), added Mr Lee.
Credo's managing director Karamjit Singh said the new rules will hit big collective sales very badly. 'For the small and medium-sized en bloc sale sites, most developers would already aim to buy the site, develop it and sell new units within five years, even before the new rules kicked in - whereas for the bigger sites it can be very difficult to be certain that you can clear all your units within five years.'
This will further reduce the attraction of bigger en bloc sale sites, which have already put developers off due to their steep pricing, say analysts.
There has not been any collective sale deal this year exceeding $200 million.
KPMG partner, tax services, Leonard Ong, said: 'The ABSD will certainly increase the costs of acquisition by developers who are unable to meet the conditions for remission.
'These costs are then likely to be passed on to end-buyers when the developed residential properties are sold. This would be regardless of who the properties are eventually sold to, including first-time home buyers. This cannot be the intention of the government.'
Under the new rules that took effect yesterday, foreigners and non-individuals (that is, corporates) buying any private residential property in Singapore will pay the 10 per cent ABSD. However, foreigners of certain nationalities - the United States, Switzerland, Liechtenstein, Norway and Ireland - who fall within the scope of respective free trade agreements will be accorded the same treatment as Singapore citizens.
Singaporeans pay a 3 per cent ABSD for their third or subsequent residential property purchase. Permanent residents pay the same ABSD rate when they buy their second or subsequent home in Singapore.
Even before the ABSD kicked in yesterday, any developer buying a GLS residential site has been given a five-year limit by the state to complete the project, although the GLS conditions do not stipulate any timeframe on the sale of units.
However, when it comes to buying a private sector residential site (for example, through an en bloc sale), foreign developers have to obtain a Qualifying Certificate, conditions for which include a five-year limit to obtain Temporary Occupation Permit (TOP) for the project and another two years from TOP date to finish selling all the units in the project.
Any developer with even a single non-Singaporean shareholder or director is deemed 'foreign'. Hence all the big listed developers, including City Developments and CapitaLand, are counted as foreign developers.
Hitherto, Singapore developers (such as Far East Organization and Hoi Hup) have been spared any time limit for completing or selling a residential project on a private site, although they face the five-year limit to complete GLS projects.
'So now the Singapore developers too will face a time limit to complete and sell units in all residential projects on sites bought from Dec 8, - if they wish to avoid ABSD,' said Mr Lee.
phantom_opera
09-12-11, 17:48
Hmm that means developers will probably do away with any big, hard to sell units, no more penthouses, 5br, strata houses etc to avoid being caught by this 5y must clear rule
Enbloc of any decent size project is pronounced dead
I am shivering to think about CM6
Hmm that means developers will probably do away with any big, hard to sell units, no more penthouses, 5br, strata houses etc to avoid being caught by this 5y must clear rule
Enbloc of any decent size project is pronounced dead
I am shivering to think about CM6
THE LAGUNA PARK potential en-bloc is gone case already..:banghead:
even if they lower their price somemore there wont be takers also..:cheers6:
Jonathan0503
09-12-11, 17:57
can consider espada as well
Yes. Espada is good. Love the location as well
Jonathan0503
09-12-11, 17:59
ic...2bdr is just fine.....i just find espada layout and size disgusting
I think the layout is quite ok for an MM. Not the 3xx sqft ones though.
Aiyo, with this ruling, developers might as well build all MM units. Or might as well all build the same hdb flats. :doh:
Actually with so much restrictions, might as well change business haa haa.... Crappyland become F&B company haa haa.
Henry Park site sold for $175.9m in collective sale
By Wong Siew Ying | Posted: 09 December 2011 1857 hrs
SINGAPORE : A collective sale site at Henry Park located off Holland Road has been sold to Kentish View Pte Ltd, a unit of Far East Organization, for S$175.888 million, making it the largest en bloc deal by value this year.
Its marketing agent Credo Real Estate says it has been a closely contested exercise that attracted five submissions for the prime District 10 apartment site.
The 999-year leasehold site with a land area of nearly 100,000 square feet comprises 48 apartments and 16 shop units.
If the sale is approved by the Strata Titles Board, each apartment owner stands to pocket gross proceeds of between S$2.3 million and S$2.9 million, while the shop owner could receive between S$3.2 million and S$4.7million each.
Credo says this would be the largest en bloc sale deal by value out of the 47 known deals done this year, the average of which has been S$60 million.
The Henry Park sale surpasses the collective deal for Hong Leong Garden Shopping Centre which fetched S$171 million in September.
Credo says the sale price for Henry Park Apartments translates to a land rate of about S$1,258 psf per plot ratio.
It adds that the developer has also made an application to purchase an adjoining State land parcel of nearly 1,400 square feet.)
If the application is accepted, Credo says taking the same sales price, it will translate to a land rate of about S$1,246 psf per plot ratio.
- CNA/ch
i am sure private developers can sell their unsold units to property funds or subsidiary or relatives etc with the intention of buying back later.
i am sure private developers can sell their unsold units to property funds or subsidiary or relatives etc with the intention of buying back later.
Funds buying considered corporate entity rite ? That's 10% more, same as foreigner. Sorry this door is closed.
i am sure private developers can sell their unsold units to property funds or subsidiary or relatives etc with the intention of buying back later.
and pay stamp duty?
FEO has impelmented counter ABSD measures liao.:)
FEO has impelmented counter ABSD measures liao.:)
what counter ABSD measures?
FEO has impelmented counter ABSD measures liao.:)The other developers will follow too... buyers are the biggest beneficiaries... :o
FEO has impelmented counter ABSD measures liao.:)
haha good. outsmart govt with good results and long q.
whacked them up down left right again.
More drastic cms
what counter ABSD measures?
For affected buyers, FEO will give 3% discount + 2% furniture voucher. Looks like a classic game of cat and mouse.:D
For affected buyers, FEO will give 3% discount + 2% furniture voucher.
Feo is wrrying that buyers will let it lapsed.
Unless buyers do not know simple maths. Buy later at 30%, - the current promotion 5%. Total savings 25%!!
Look out for the next headlines. More units returned
For affected buyers, FEO will give 3% discount + 2% furniture voucher. Looks like a classic game of cat and mouse.:D
Chey, same as Jan this year where they give straight 5% furniture vouchers during the launch of waterfront isle.
:D
FEO official discount is 3% + 2%, but ST is reporting that buyer can negotiate up to 16% more in discount privately......wow that's a 21% discount?:scared-4:
FEO official discount is 3% + 2%, but ST is reporting that buyer can negotiate up to 16% more in discount privately......wow that's a 21% discount?:scared-4:
So developers see a gloomy future ahead??
Headlines: 21% discount when u buy at new launch!!
FEO official discount is 3% + 2%, but ST is reporting that buyer can negotiate up to 16% more in discount privately......wow that's a 21% discount?:scared-4:Its only 3rd day since the announcement of the measure and its already 21% discount... wow... watch out drivers... downhill up ahead... :cheers6:
listed price up 20%, so net 1%?:D :D
Aiya, 21% discounts by FEO is very normal lah. Their list price is usually out of this world type. E.g. Waterfront isle during launch. 15% discount + 2% loyality discount + 5% furniture vouchers.
Don't be fooled. :p
Aiya, 21% discounts by FEO is very normal lah. Their list price is usually out of this world type. E.g. Waterfront isle during launch. 15% discount + 2% loyality discount + 5% furniture vouchers.
Don't be fooled. :p
we paid BSD/ABSD before or after discounts from FEO? ie we pay stamp duties on the list price?
genuine question, no sarcasm involved.
we paid BSD/ABSD before or after discounts from FEO? ie we pay stamp duties on the list price?
genuine question, no sarcasm involved.
I think you pay ABSD on the amount stated in the S&P. Furniture vouchers and such wouldn't count.
Funds buying considered corporate entity rite ? That's 10% more, same as foreigner. Sorry this door is closed.
If CM5 stays, for future developments, Far East can't sit tight n be official landlord to collect rent liao. The best way is for Far East to set up another subsidiary to buy the remaining unsold units. Pay 10% ABSD on unsold units is better than paying 10% ABSD on land price.
Bigger plots will see less agggressive bids compared to smaller plots. Maybe eliminate townhouse concept also in future sales.....
How about projects that are exclusively service apartments, but on residential land? Companies built condos just for the sole purpose of renting out.
What do they fall under?
Do they incur ABSD on unsold units?
They can actually get quite good rental yield if based on their purchase price, construction cost.
As expected, developers still need to eat, so they cut into their margins. At the end of the day, their margins are over 10% at least, for the sake of moving inventory, they would be wise to absorb the extra 3% at least.
As expected, developers still need to eat, so they cut into their margins. At the end of the day, their margins are over 10% at least, for the sake of moving inventory, they would be wise to absorb the extra 3% at least.
with yesterday headlines 30% drop in prices. i doubt so buyers care-less for the absorbation of 3%.. minimium 20-30% absorbation.
70% locals buyer are pouring in their money into properties, because;
- in hope for capital appreciation,
- hot monies,
- foreigners buyers.
now confidence and dreams shattered..
no more foreigners.
it's a case of u sell to me, and i sell to u.
or u scratch my back, and i scratch ur back
As expected, developers still need to eat, so they cut into their margins. At the end of the day, their margins are over 10% at least, for the sake of moving inventory, they would be wise to absorb the extra 3% at least.
realtor agency maangment's faces sure look wise and "happy" when interviewed on air, wf regards to the latest CMs..
body language and expression tells it all..
realtor agency maangment's faces sure look wise and "happy" when interviewed on air, wf regards to the latest CMs..
body language and expression tells it all..
you watching "lie to me"?
you watching "lie to me"?
nope..:ashamed1:
I was looking to see whether those mass market projects have any absorption by the developers in today's papers, looks like it's those atas projects cutting their margins.
devilplate
10-12-11, 10:20
If CM5 stays, for future developments, Far East can't sit tight n be official landlord to collect rent liao. The best way is for Far East to set up another subsidiary to buy the remaining unsold units. Pay 10% ABSD on unsold units is better than paying 10% ABSD on land price.
Bigger plots will see less agggressive bids compared to smaller plots. Maybe eliminate townhouse concept also in future sales.....
Only land bot after 8dec kena wat.....
So i told u guys oredi....i m expecting ocr gls land bid to go as low as 150psf....some of u still say i so negative.....hahaha
Wait and see lor....i tink first gls tender closing on 20th jan.....just wait ;)
Only land bot after 8dec kena wat.....
So i told u guys oredi....i m expecting ocr gls land bid to go as low as 150psf....some of u still say i so negative.....hahaha
Wait and see lor....i tink first gls tender closing on 20th jan.....just wait ;)
in the interest of the developer, they could bid 150psf, but if the govt accepts that bid, would it be considered as raiding our reserves??
devilplate
10-12-11, 10:24
with yesterday headlines 30% drop in prices. i doubt so buyers care-less for the absorbation of 3%.. minimium 20-30% absorbation.
70% locals buyer are pouring in their money into properties, because;
- in hope for capital appreciation,
- hot monies,
- foreigners buyers.
now confidence and dreams shattered..
no more foreigners.
it's a case of u sell to me, and i sell to u.
or u scratch my back, and i scratch ur back
Yeah brother...u r so right! Where got fun by playing wif our own bros and sis money without foreigners....? Whahahaha
Eu bubble burst...ppty px plunge further.....next recovery will be a very slow and painful one and dun expect foreigner to come back and buy our ppty unless absd removed and ppty px drop by 50%
devilplate
10-12-11, 10:25
in the interest of the developer, they could bid 150psf, but if the govt accepts that bid, would it be considered as raiding our reserves??
Tats y i oredi said yday tat i am very excited to see how this goddammed thing pan out......hohohohoho
Yeah brother...u r so right! Where got fun by playing wif our own bros and sis money without foreigners....? Whahahaha
Eu bubble burst...ppty px plunge further.....next recovery will be a very slow and painful one and dun expect foreigner to come back and buy our ppty unless absd removed and ppty px drop by 50%
not just absd removed. provided recession is over and fast.
if not slow growth like past decade..?? forgot alrdy which year
u cld just sell all, and trade for a landed. tat's ur consolation
Tats y i oredi said yday tat i am very excited to see how this goddammed thing pan out......hohohohoho
i think the days of 800psf ppr will be over. they'll probably all congest around the 300-600 psf ppr islandwide.
HK gov just announced that they are ready to reverse some of the cooling measures if the property price correction is too drastic, i guess singapore government might have to make similar announcement in about 6 to 9 months time.
HK gov just announced that they are ready to reverse some of the cooling measures if the property price correction is too drastic, i guess singapore government might have to make similar announcement in about 6 to 9 months time.
govt scholars alrdy factored in the consequences, for the latest CMs..
they dont anyhw dished out, and waive off. everything approved by top management decision.
sgp govt is not malaysia govt, tday A tmr B.
i doubt hk will reverse much of their policy.
HK gov just announced that they are ready to reverse some of the cooling measures if the property price correction is too drastic, i guess singapore government might have to make similar announcement in about 6 to 9 months time.
They don't want to be too uncompetitive against HK so they'll be watching what they do.
govt scholars alrdy factored in the consequences, for the latest CMs..
they dont anyhw dished out, and waive off. everything approved by top management decision.
sgp govt is not malaysia govt, tday A tmr B.
i doubt hk will reverse much of their policy.
You might be wrong. The external conditions change so fast and the young scholars are not experienced enough to project wisely. A closer look will reveal that many government policies nowadays are "hansaplasts" and there are many policy reversals. The latest being removal of English requirement for maids or large downward revisions of COE quota.
govt scholars alrdy factored in the consequences, for the latest CMs..
they dont anyhw dished out, and waive off. everything approved by top management decision.
sgp govt is not malaysia govt, tday A tmr B.
i doubt hk will reverse much of their policy.S'pore called this measure 'additional' meaning they can remove it anytime they deem fit. They will need foreign money for the long run. They are just controlling it coz too much is flowing in and out... :cheers6:
govt either do it now or never. cos by then 2016 GE, they cannot do anything to salvage thr housing crunch issue.
Or wait till more QEs.. or tusnami hot monies to flood into sgp..??
长痛不如短痛
*humans are selfish,greedy.. all out to protect their million dollars pay
Haa haa wait all the hot money flow in JB's iskandar project.
:p
Haa haa wait all the hot money flow in JB's iskandar project.
:pWow.. conspirarcy theory... our neighbors approach us to help pump some $$ into their project... :cheers6:
Jonathan0503
10-12-11, 11:28
HK gov just announced that they are ready to reverse some of the cooling measures if the property price correction is too drastic, i guess singapore government might have to make similar announcement in about 6 to 9 months time.
Saw in today's chinese papers HK claim this is not true.
They will not be reversing the measures if there are still elements of speculation
Saw in today's chinese papers HK claim this is not true.
They will not be reversing the measures if there are still elements of speculation
Ouch:scared-4: hw can govt reverse when speculation movements still lurking.
Ouch:scared-4: hw can govt reverse when speculation movements still lurking.
when price come down, speculation is ok, when price go up up up, speculation is not ok. so it depends on which side of the cycle it's on.
so anybody has any idea?
previously posted:
How about projects that are exclusively service apartments, but on residential land? Companies built condos just for the sole purpose of renting out.
What do they fall under?
Do they incur ABSD on unsold units?
so anybody has any idea?
previously posted:
How about projects that are exclusively service apartments, but on residential land? Companies built condos just for the sole purpose of renting out.
What do they fall under?
Do they incur ABSD on unsold units?
my guess is yes... dont think govt cares if developer sells them or keep them as long as it falls under residential development.
loyalty_disc
10-12-11, 15:14
FEO official discount is 3% + 2%, but ST is reporting that buyer can negotiate up to 16% more in discount privately......wow that's a 21% discount?:scared-4:
You are right! Usually FEO offer new Launch discounts 12%* + Early bird disc up to 6%* + 1% Referral discount)
"relief package":-
(A) For all units..
1. Unaffected Sgp buyers (1st/2nd time buyers) & PR (1st time buyers) :
- stamp duty reimbursement at 20% payment
- 2%FV at 30% payment
2. Affected buyers (foreigners/PR's 2nd unit/Sgp's 3rd unit) :
- 3% ABSD reimbursement at 20% payment
- 2%FV at 30% payment
(B) STAR-BUYs w SDR
1. Unaffected Sgp buyers (1st/2nd time buyers) :
- stamp duty reimbursement at 20% payment
- 2%FV at 30% payment
- 3%FV at 50% payment
*for completed projs, 5%FV at completion
2. Affected buyers (foreigners/PR's 2nd unit/Sgp's 3rd unit) :
- stamp duty reimbursement at 20% payment
- 3% ABSD reimbursement at 20% payment
- 2%FV at 30% payment
I like the way they call it "relief" packages.:D
I like the way they call it "relief" packages.:D
Sound very Gahmen....:D
Tats y i oredi said yday tat i am very excited to see how this goddammed thing pan out......hohohohoho
All deveolpers sit tight tight and all don't bid for any release gls. Relax after made tons of $ already.
Tats y i oredi said yday tat i am very excited to see how this goddammed thing pan out......hohohohoho
Ha ha all developers can shake leg first and all don't bid all any gls to standoff. Relax for a year Anyway already made tons of money last few years
Ha ha all developers can shake leg first and all don't bid all any gls to standoff. Relax for a year Anyway already made tons of money last few yearsThen before you know it, SL, the most 'beloved' developer by other developers will emerge and get that land for $1psf... Lol! :)
owners of the development companies can shake leg. but what about the employees of those companies?
devilplate
10-12-11, 22:06
owners of the development companies can shake leg. but what about the employees of those companies?
Shake leg without pay lor
Shake leg without pay lor
can they afford it? royal umbrella rice already over $30!
can they afford it? royal umbrella rice already over $30!
This is really hitting people under the belt during a time of uncertainty........
Business Times
http://www.businesstimes.com.sg/sub/news/story/0,4574,469019,00.html
Published December 9, 2011
New terms may hit large collective sales
To avoid paying ABSD, developers must build, sell all units on residential sites within 5 years
By KALPANA RASHIWALA
(SINGAPORE) The latest measures unveiled by the government are expected to have major implications for developers buying residential land, especially involving collective sale sites. They will have to develop any residential sites they buy from Dec 8 and sell all the units in the new project within five years - if they want to avoid paying the new 10 per cent additional buyer's stamp duty (ABSD).
'This can be very onerous especially when the property market is slow,' said Credo Real Estate executive director Ong Teck Hui.
Drew & Napier head of tax practice Ong Sim Ho said: 'For developers, it has become more difficult and costly to land bank.' He suggested one intention of the new rule could be to give more certainty to supply numbers on the completion of private homes.
Information in the Inland Revenue Authority of Singapore e-tax guide on the ABSD indicates that the new 10 per cent ABSD is payable by corporate entities buying vacant land and development sites for residential use - although they can apply for upfront remission if the buyer (developer) undertakes to develop and dispose of all units in the new development (which must have more than four residential units) within five years of the date of contract or agreement to buy the site, among other conditions.
If this condition is not met, the ABSD (with interest) becomes payable immediately upon the expiry of five years. The residential sites include Government Land Sales (GLS) plots and private-sector sites including en bloc sales.
Market watchers say that with the five-year limit to complete the project and sell all units, developers will have to weigh their land purchase decisions more carefully.
'They must be confident of developing the project and disposing of all residential units in it within five years - taking into account the possibility of any turn in market conditions and in the case of en bloc sales, the risk of a possible delay in court approval,' says Lee Liat Yeang, partner in real estate practice group at law firm Rodyk & Davidson.
For en bloc sales, the date of contract or agreement refers to the date when the site is awarded by the Sales Committee. From this point, it can take six to 12 months or even longer for legal completion of the site's purchase (including court approval of the en bloc sale).
This additional time eats into the five-year limit the developer has to complete building the new residential project on the site and selling all the units, said Mr Lee.
But for sites bought through the GLS programme, the impact will be less as there is certainty that the legal completion of the land purchase will take place by the 90th day of the site's award (the latter is deemed date of contract), added Mr Lee.
Credo's managing director Karamjit Singh said the new rules will hit big collective sales very badly. 'For the small and medium-sized en bloc sale sites, most developers would already aim to buy the site, develop it and sell new units within five years, even before the new rules kicked in - whereas for the bigger sites it can be very difficult to be certain that you can clear all your units within five years.'
This will further reduce the attraction of bigger en bloc sale sites, which have already put developers off due to their steep pricing, say analysts.
There has not been any collective sale deal this year exceeding $200 million.
KPMG partner, tax services, Leonard Ong, said: 'The ABSD will certainly increase the costs of acquisition by developers who are unable to meet the conditions for remission.
'These costs are then likely to be passed on to end-buyers when the developed residential properties are sold. This would be regardless of who the properties are eventually sold to, including first-time home buyers. This cannot be the intention of the government.'
Under the new rules that took effect yesterday, foreigners and non-individuals (that is, corporates) buying any private residential property in Singapore will pay the 10 per cent ABSD. However, foreigners of certain nationalities - the United States, Switzerland, Liechtenstein, Norway and Ireland - who fall within the scope of respective free trade agreements will be accorded the same treatment as Singapore citizens.
Singaporeans pay a 3 per cent ABSD for their third or subsequent residential property purchase. Permanent residents pay the same ABSD rate when they buy their second or subsequent home in Singapore.
Even before the ABSD kicked in yesterday, any developer buying a GLS residential site has been given a five-year limit by the state to complete the project, although the GLS conditions do not stipulate any timeframe on the sale of units.
However, when it comes to buying a private sector residential site (for example, through an en bloc sale), foreign developers have to obtain a Qualifying Certificate, conditions for which include a five-year limit to obtain Temporary Occupation Permit (TOP) for the project and another two years from TOP date to finish selling all the units in the project.
Any developer with even a single non-Singaporean shareholder or director is deemed 'foreign'. Hence all the big listed developers, including City Developments and CapitaLand, are counted as foreign developers.
Hitherto, Singapore developers (such as Far East Organization and Hoi Hup) have been spared any time limit for completing or selling a residential project on a private site, although they face the five-year limit to complete GLS projects.
'So now the Singapore developers too will face a time limit to complete and sell units in all residential projects on sites bought from Dec 8, - if they wish to avoid ABSD,' said Mr Lee.
Developers should market to these countries that are not affected because they are part of FTA. Looks like Ang Mohs are welcome to really make Singapore multi-cultural and multi-racial country. Last few year too many India Indians and China Chinese..... now must balance up...
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