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19-02-13, 15:00
http://www.straitstimes.com/archive/saturday/premium/money/story/property-developers-anxious-over-curbs-20130216
Property developers 'anxious' over curbs
They worry about cooling measures amid possible industry slowdown
Published on Feb 16, 2013
By Esther Teo Property Correspondent
PROPERTY developers are concerned that recent cooling measures have hit just as the industry may be slowing.
Mr Chia Boon Kuah, newly elected president of Redas, the Real Estate Developers' Association of Singapore, said yesterday the property cycle is maturing amid continued global uncertainty. This has made developers "naturally anxious" about the curbs imposed last month.
Mr Chia told more than 500 guests at a Spring Festival lunch at W Singapore Sentosa Cove: "Real estate is a cyclical business, much dependent on global economic performances, geopolitical developments and domestic market conditions.
"In Singapore, we are further challenged by our limited land mass and the attendant high cost of land for development."
Mr Chia, who is also executive director and chief operating officer of property sales at Far East Organization, added that Redas is a major stakeholder in the well- being of Singapore's economy and acknowledges the Government's desire to achieve a soft landing for the property market.
Developers are committed to contributing to a stable and sustainable market, he noted.
Other industry players also weighed in on the property market's outlook this year.
Mr Wong Heang Fine, chief executive of CapitaLand Residential Singapore, said that while new home sales volumes are likely to fall on the back of the cooling measures, prices will depend on various factors, including land values and the health of the local and global economy.
Mr Lim Ee Seng, chief executive of Frasers Centrepoint, said buyers have become more cautious in light of the measures. They are waiting to see whether more measures or more developer sweeteners will be introduced.
"With developers giving discounts, I see a stabilisation of prices... Volumes could stay the same as last year," he said. "But with the right product in the right location, demand will still be strong."
Mr Lim, who is also Redas' second vice-president, noted that it is still too early to tell whether a White Paper raising the possibility of a population of 6.9 million by 2030 will cancel out the effect of the cooling measures, although on the surface it seems to be a source of new housing demand.
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Property developers 'anxious' over curbs
They worry about cooling measures amid possible industry slowdown
Published on Feb 16, 2013
By Esther Teo Property Correspondent
PROPERTY developers are concerned that recent cooling measures have hit just as the industry may be slowing.
Mr Chia Boon Kuah, newly elected president of Redas, the Real Estate Developers' Association of Singapore, said yesterday the property cycle is maturing amid continued global uncertainty. This has made developers "naturally anxious" about the curbs imposed last month.
Mr Chia told more than 500 guests at a Spring Festival lunch at W Singapore Sentosa Cove: "Real estate is a cyclical business, much dependent on global economic performances, geopolitical developments and domestic market conditions.
"In Singapore, we are further challenged by our limited land mass and the attendant high cost of land for development."
Mr Chia, who is also executive director and chief operating officer of property sales at Far East Organization, added that Redas is a major stakeholder in the well- being of Singapore's economy and acknowledges the Government's desire to achieve a soft landing for the property market.
Developers are committed to contributing to a stable and sustainable market, he noted.
Other industry players also weighed in on the property market's outlook this year.
Mr Wong Heang Fine, chief executive of CapitaLand Residential Singapore, said that while new home sales volumes are likely to fall on the back of the cooling measures, prices will depend on various factors, including land values and the health of the local and global economy.
Mr Lim Ee Seng, chief executive of Frasers Centrepoint, said buyers have become more cautious in light of the measures. They are waiting to see whether more measures or more developer sweeteners will be introduced.
"With developers giving discounts, I see a stabilisation of prices... Volumes could stay the same as last year," he said. "But with the right product in the right location, demand will still be strong."
Mr Lim, who is also Redas' second vice-president, noted that it is still too early to tell whether a White Paper raising the possibility of a population of 6.9 million by 2030 will cancel out the effect of the cooling measures, although on the surface it seems to be a source of new housing demand.
[email protected]