View Full Version : Developers' Projects with Prices Slashed / ABSD Rebates / Re-Launch Discounts / etc.
This discussion thread is for sharing good lobangs with the forumers here. Please feel free to contribute any good lobangs that you had come across.
In the current low sale-volume climate, we foresee many developers' projects going to drop prices soon - especially for those unsold units that are near, or have even passed, their T.O.P dates.
In fact, some have already dropped prices. I shall start by contributing here:
27 July 2014
1) Vermont on Cairnhill
Cairnhill Rise (D09)
Freehold
Just T.O.P.
Many units went by more than half-million dollars discounts
Results: 31 units out of the last 34 units were sold in 2 weeks upon the start of the discount program.
Currently left with only 3 units of 3BR.
From $2.691m, or $2016psf nett.
2) Whitehaven
Pasir Panjang Road (D05)
Freehold
Last unit of 4BR DK ($1530psf) and 12 units of penthouses (from $1285psf)
Developer opened to negotiation!
3) The Skywoods
Dairy Farm Road (D23) near Hillview MRT Station
99-years LH
Prices have dropped to $1,1xx to $1,3xx psf
Results: 19 units sold in 2 weeks
4) The Crest
Prince Charles Crescent (D03)
99-years LH
Prices are averagely $1,6xx psf to $1,9xx psf. Already cheaper than the neighbouring Echelon, yet buyers will enjoy additional ABSD rebates.
5) Hallmark Residences
Ewe Boon Road (D10) near Stevens MRT
Freehold
T.O.P. coming soon
Prices slashed by 10%. Average prices dropped from $2,3xx psf to $1,8xx psf (for 3BR from $2.8m, 4BR from $3.5m) to $1,9xx psf (for 2BR, from $1.89m).
Results: 40% sold in 2weeks. For buyers looking for 4BR, there are only 2 units left.
6) The Trilinq
Jalan Lempeng (D05) near Clementi MRT
99-yrs LH
Developer opened to negotiation. But re-launch program coming soon. Stay tuned.
Need more info to the above projects? Feel free to contact me at 96882200 or
[email protected].
Please feel free to contribute here if you come across any good discounts from developers. :)
Hopefully they are genuine discounts and not those gimmicky, 'mark-up-prices-but-give-discounts' types. Haha.
Panorama got discounts too...
Panorama got discounts too...
Thanks august.
8) The Panorama
Ang Mo Kio Ave 2 (D20) next to Mayflower MRT
99-yrs LH.
Prices slashed from ($13xx psf - $15xx psf) to ($11xx psf - $13xx psf)
Results: 63 units sold in June/July
Wow! Developers can provide ABSD rebates! This is akin to exploiting loophole and evasion of the ABSD cooling measures and nothing is being done by MND and MAS? Are they sleeping or just closing one eye? :o
This discussion thread is for sharing good lobangs with the forumers here. Please feel free to contribute any good lobangs that you had come across.
In the current low sale-volume climate, we foresee many developers' projects going to drop prices soon - especially for those unsold units that are near, or have even passed, their T.O.P dates.
In fact, some have already dropped prices. I shall start by contributing here:
27 July 2014
1) Vermont on Cairnhill
Cairnhill Rise (D09)
Freehold
Just T.O.P.
Many units went by more than half-million dollars discounts
Results: 31 units out of the last 34 units were sold in 2 weeks upon the start of the discount program.
Currently left with only 3 units of 3BR.
From $2.691m, or $2016psf nett.
2) Whitehaven
Pasir Panjang Road (D05)
Freehold
Last unit of 4BR DK ($1530psf) and 12 units of penthouses (from $1285psf)
Developer opened to negotiation!
3) The Skywoods
Dairy Farm Road (D23) near Hillview MRT Station
99-years LH
Prices have dropped to $1,1xx to $1,3xx psf
Results: 19 units sold in 2 weeks
4) The Crest
Prince Charles Crescent (D03)
99-years LH
Prices are averagely $1,6xx psf to $1,9xx psf. Already cheaper than the neighbouring Echelon, yet buyers will enjoy additional ABSD rebates.
5) Hallmark Residences
Ewe Boon Road (D10) near Stevens MRT
Freehold
T.O.P. coming soon
Prices slashed by 10%. Average prices dropped from $2,3xx psf to $1,8xx psf (for 3BR from $2.8m, 4BR from $3.5m) to $1,9xx psf (for 2BR, from $1.89m).
Results: 40% sold in 2weeks. For buyers looking for 4BR, there are only 2 units left.
6) The Trilinq
Jalan Lempeng (D05) near Clementi MRT
99-yrs LH
Developer opened to negotiation. But re-launch program coming soon. Stay tuned.
Need more info to the above projects? Feel free to contact me at 96882200 or
[email protected].
Wow! Developers can provide ABSD rebates! This is akin to exploiting loophole and evasion of the ABSD cooling measures and nothing is being done by MND and MAS? Are they sleeping or just closing one eye? :o
Why? u jealous but cannot afford? LOL!
I suspect Commonwealth Towers will be next to lelong. Haha.
i prefer resale. lower psf. ready to be rented out.
bargain hunter
27-07-14, 20:37
this means that if buyer is paying 15% they rebate 15% and if buyer is paying 10%, they rebate 10% and likewise if buyer is paying 7%, they will rebate 7%?
4) The Crest
Prince Charles Crescent (D03)
99-years LH
Prices are averagely $1,6xx psf to $1,9xx psf. Already cheaper than the neighbouring Echelon, yet buyers will enjoy additional ABSD rebates.
i prefer resale. lower psf. ready to be rented out.
My sentiments exactly. I never buy any new since my 1st purchase years years ago
is the vermont such a great deal after the discounts? all the units were taken up
bargain hunter
30-07-14, 16:43
seems like brand new 1400 sq ft 3 bedders at 2000psf or around 2.7m is attractive to the buyers.
is the vermont such a great deal after the discounts? all the units were taken up
thomastansb
31-07-14, 10:23
Same here. It makes more financial sense. I collect 3-4 years of rental more. And after 10 years, the price of a new unit is more or less the same as the older one. As a buyer, do you really care if the property TOP in 1995 or 1999? Both are old.
i prefer resale. lower psf. ready to be rented out.
smellyfish
31-07-14, 11:23
D'leedon - 15% for all units.
anymore new discounts?
is the vermont such a great deal after the discounts? all the units were taken up
very good for own stay!
bargain hunter
31-07-14, 11:34
but this one is after mark up then discount back 15%. my friend bought the true discount in jan 2013. since then, similar units had been marked up then discounted back 15%, which is still more ex than the jan 2013 sale. similarly so for interlace, 19% is not really a great discount price because it is after mark up.
D'leedon - 15% for all units.
anymore new discounts?
Same here. It makes more financial sense. I collect 3-4 years of rental more. And after 10 years, the price of a new unit is more or less the same as the older one. As a buyer, do you really care if the property TOP in 1995 or 1999? Both are old.
It depends on the timing and 'lobang'
For resale u need 'lobang' and hardwork and can be very time consuming.
is the vermont such a great deal after the discounts? all the units were taken up
I think it is a good deal especially it has TOPed. Psf about the same as older condos nearby.
is the vermont such a great deal after the discounts? all the units were taken up
D09, brand new, just TOP, with many units at $2,0xx psf or even lower ley.
Vermont was 100% SOLD since last Monday. Even the show suites with extra ID costs were sold.
The power of price slashes. Shows that it's not all about affordability. It's about buyers looking for value-buys.
9. The Cascadia
Bukit Timah Road next to King Albert Park MRT and the new KAP mall.
FREEHOLD
T.O.P. since 2010
11 units of penthouses, 7 units of 2+S, 4 units of 3BR and 1 unit of 4BR remaining.
Prices were slashed from ($1,7xx psf - $2,0xx psf) range to current averagely $1,6xx psf (referring to typical units. Not penthouses or patio units).
We still have one more 2+S unit at $1,5xx psf.
Results: 8 units sold in the months of June/July. Good-facing 3BR units all gone (less the show suite).
This one really good lobang. For all the ai-phee-ai-cyee buyers who "want freehold, want central location, want MRT, want mall, want good layout (all come with enclosed kitchen and yard and queen-size bedrooms), yet cheap". Haha dunno where else to find liao. :D
bargain hunter
01-08-14, 09:59
this is from developer?
what about the fund which is trying to unload the units it bought from the developer? did they manage to sell well and/or are they slashing prices as well?
9. The Cascadia
Bukit Timah Road next to King Albert Park MRT and the new KAP mall.
FREEHOLD
T.O.P. since 2010
11 units of penthouses, 7 units of 2+S, 4 units of 3BR and 1 unit of 4BR remaining.
Prices were slashed from ($1,7xx psf - $2,0xx psf) range to current averagely $1,6xx psf (referring to typical units. Not penthouses or patio units).
We still have one more 2+S unit at $1,5xx psf.
Results: 8 units sold in the months of June/July. Good-facing 3BR units all gone (less the show suite).
This one really good lobang. For all the ai-phee-ai-cyee buyers who "want freehold, want central location, want MRT, want mall, want good layout (all come with enclosed kitchen and yard and queen-size bedrooms), yet cheap". Haha dunno where else to find liao. :D
thomastansb
01-08-14, 10:11
Which investments don't need? Unless you go with the flow, go in the bank and buy minibonds. Lose money, then blame everyone else. No pain, no gain.
It depends on the timing and 'lobang'
For resale u need 'lobang' and hardwork and can be very time consuming.
this is from developer?
what about the fund which is trying to unload the units it bought from the developer? did they manage to sell well and/or are they slashing prices as well?
Hi bargain hunter. Indeed, these units are owned by the fund. The developer do not hold any more units.
Developers are giving 'discounts' based on marked-up prices. Know of someone who bought direct from fund awhile back - 3br, 4th flr, pool-facing @ just over $1,400 psf, quantum ard $1.8M+.
9. The Cascadia
Bukit Timah Road next to King Albert Park MRT and the new KAP mall.
FREEHOLD
T.O.P. since 2010
11 units of penthouses, 7 units of 2+S, 4 units of 3BR and 1 unit of 4BR remaining.
Prices were slashed from ($1,7xx psf - $2,0xx psf) range to current averagely $1,6xx psf (referring to typical units. Not penthouses or patio units).
We still have one more 2+S unit at $1,5xx psf.
Results: 8 units sold in the months of June/July. Good-facing 3BR units all gone (less the show suite).
This one really good lobang. For all the ai-phee-ai-cyee buyers who "want freehold, want central location, want MRT, want mall, want good layout (all come with enclosed kitchen and yard and queen-size bedrooms), yet cheap". Haha dunno where else to find liao. :D
bargain hunter
01-08-14, 11:37
ic. its good that the fund has cleared most of its units then.
Hi bargain hunter. Indeed, these units are owned by the fund. The developer do not hold any more units.
Developers are giving 'discounts' based on marked-up prices. Know of someone who bought direct from fund awhile back - 3br, 4th flr, pool-facing @ just over $1,400 psf, quantum ard $1.8M+.
I went through all the caveats lodged. No such transaction in my records.
The only $1,4xx psf units are all ground floor patio units.
I went through all the caveats lodged. No such transaction in my records.
The only $1,4xx psf units are all ground floor patio units.
Possible to be unlogged or unrecorded you think?
I went through all the caveats lodged. No such transaction in my records.
The only $1,4xx psf units are all ground floor patio units.
The Cascadia saw 72 units transacted in the primary market at $1,464 psf median price.
I found this from a blog on 15 June 2010: http://thecascadia.wordpress.com/
Thinking out loud and sharing what I know first hand. No idea abt your sources. Cheers.
I went through all the caveats lodged. No such transaction in my records.
The only $1,4xx psf units are all ground floor patio units.
The Cascadia saw 72 units transacted in the primary market at $1,464 psf median price.
I found this from a blog on 15 June 2010: http://thecascadia.wordpress.com/
Not surprising about the median price cos penthouses can go as low as $8xx psf.
Possible to be unlogged or unrecorded you think?
Yup possible.
But it will be an extreme outlier on the charts then, when no other typical units come close to this price level.
D09, brand new, just TOP, with many units at $2,0xx psf or even lower ley.
Vermont was 100% SOLD since last Monday. Even the show suites with extra ID costs were sold.
The power of price slashes. Shows that it's not all about affordability. It's about buyers looking for value-buys.
so sad, i was not looking to buy and by the time i heard about the discounts and got an in principle loan approval, all the developer units were sold...
anyone knows if there is similar value for newly top units for own stay?
but this one is after mark up then discount back 15%. my friend bought the true discount in jan 2013. since then, similar units had been marked up then discounted back 15%, which is still more ex than the jan 2013 sale. similarly so for interlace, 19% is not really a great discount price because it is after mark up.
Left only the high floors... which are easily >1600psf.
The cheapest psf were sold during the first re-launch Dec2011 - Feb 2012 period.
Development fast approaching TOP.
so sad, i was not looking to buy and by the time i heard about the discounts and got an in principle loan approval, all the developer units were sold...
anyone knows if there is similar value for newly top units for own stay?
Register with me lor. Wait for units to 'bounce back' lor. :D
10) Latest: SKY HABITAT 4BR units lelong further!
Guess many are waiting for this from the Lelong King.
As of today, Sky Habitat 4BR units are going at about 10% cheaper.
Stacks 8 and 11. 1,798 sqft.
From $1,270psf (#02-08)
Call me 96882200 for full price list.
10) Latest: SKY HABITAT 4BR units lelong further!
Guess many are waiting for this from the Lelong King.
As of today, Sky Habitat 4BR units are going at about 10% cheaper.
Stacks 8 and 11. 1,798 sqft.
From $1,270psf (#02-08)
Call me 96882200 for full price list.
the quantum is about $2.28 million.
i think in today's market anything above 1.5m million is going to be hard to sell for the mass market.
the quantum is about $2.28 million.
i think in today's market anything above 1.5m million is going to be hard to sell for the mass market.
It's about value perception.
8 units of Sky Habitat 4BR sold on just yesterday alone. All high floors.
Another 10 units do Sky Habitat 4BR done. Total 18 units done in less than 2 days.
Singaporeans really very rich. $2m+ so many buyers. All waiting nia.
No wonder it is premature to relax cooling measures now. All the people with cash out there just waiting only....:rolleyes:
About how much were the high floor 4 bedders going for?
About how much were the high floor 4 bedders going for?
Nov 2013 #17-12 $1749psf
Nov 2012 #18-12 $1703psf
Nov 2012 #32-16 $1702psf
Oct 2013 #20-15 $1588psf
Mar 2013 #35-03 $1693psf
Sizes between 1518sqft and 2077sqft
On average, how much were those high floors s8milar to those sold in the last 2 days.
Nov 2013 #17-12 $1749psf
Nov 2012 #18-12 $1703psf
Nov 2012 #32-16 $1702psf
Oct 2013 #20-15 $1588psf
Mar 2013 #35-03 $1693psf
Sizes between 1518sqft and 2077sqft
JUdging from the first 3 transactions, it is hard to conclude whether there is real discount or not. It seems the facing of stacks and maybe, the size too, matters a lot.
these prices no discount. more interest in the average prices of those high floor 4 bedders sold in the last few days.
these prices no discount. more interest in the average prices of those high floor 4 bedders sold in the last few days.
$1,3xx psf.
bargain hunter
11-08-14, 16:00
so how many sold liao? after the first 18?
$1,3xx psf.
This price more decent now compared to the earlier launch.
princess_morbucks
23-08-14, 22:38
Sales in the CCR surged by 91% in July.
Developers of high-end projects are discovering that desperate times call for desperate measures. After grappling with unsold stock for over a year, some domestic developers are beginning to employ drastic price cuts to move their luxury inventory.
According to a report by Barclays, sales in the upscale Core Central Region (CCR) surged by 91% in July after developers cut prices by as much as 20%.
“In particular, The Vermont on Cairnhill managed to clear its remaining 37 units after cutting prices by some 12% from cS$2,400psf to S$2,113psf. Hallmark Residences, off Bukit Timah Road, sold 3 units in July and sold 63% of its 75 units after bringing down selling prices by 14-20% from its initial launch price of cS$2,200psf in June 2013,” noted the report.
But sales at luxury developments launched in June, namely The Crest and Trilive, slowed even further in July. Barclays noted that total sales in these projects are only at 8% and 10% of their total available units.
Here’s more from Barclays:
After a dismal June, July's developer sales stayed flat m/m and y/y at 484 units, as compared to 482 units each in June 2014 and July 2013.
This brought year-to-July sales to 4,893 units, down 53% y/y from 10,432 units in 7M13. Take-up at the four new launches was subdued at best, especially for those that held prices at over S$1,900psf.
Sales from previous months' launches continued to slow significantly, while one high-end project sold its remaining completed inventory after cutting prices by c12%. We expect this weak trend to continue beyond August, as the traditionally quiet Hungry Ghost Festival month kicked in from 27 July.
- See more at: http://sbr.com.sg/residential-property/in-focus/desperate-measures-posh-condo-prices-slashed-20-buck-dismal-sales-tren#sthash.AncBTeaA.dpuf
bargain hunter
24-08-14, 01:41
bro sunboy, the monthly sales data shows that the 37 units at vermont at cairnhill were sold at around 2100psf. however, the caveats lodged seem to show the original, pre 20% discount prices. could u share with us how does the discount work? why are the caveats allowed to be lodged at prices which are 20% above the actual transacted prices?
bro sunboy, the monthly sales data shows that the 37 units at vermont at cairnhill were sold at around 2100psf. however, the caveats lodged seem to show the original, pre 20% discount prices. could u share with us how does the discount work? why are the caveats allowed to be lodged at prices which are 20% above the actual transacted prices?
I was there with the Vermont Marketing Agents. This is what was explained to me by the Agents: The full undiscounted price is reflected in the Sale and Purchase Agreement. The buyer signs a side letter which states that upon full completion of the purchase, ie payment of 100% of the purchase price to the developer, the developer will issue a cash refund of of the 20% (or whatever) discount back to the Buyer. This way, the full purchase price (without the discount) is reflected in the caveat. I ask why the developer is doing this and the answer is to protect the original buyers from the fall in price. I then said that the original buyers will surely know about the discount, to which the Agents just smiled and shrugged their shoulders.
It is strange that for the purpose of the loan to value, MAS guidelines says that the purchase price must be netted of with any rebates. So, in Vermont's case, the bank must value the property less the discount. But URA's caveat reflects the higher undiscounted price. It appears that MAS is ahead of the curve compared to the URA. There were news report early last year that URA was intending to put a stop to this practice of not reflecting the discount in the caveat. But there has been no word from URA.
Consequence is this. The URA caveats does not reflect the discounts given by some developers. So, the fall in property price is, in reality, much more severe than what the index suggests. By definition any reported property index that relies on the URA caveats are not reflecting the discounts given by the developer and therefore not truly reflective of the market situation. Vermont's developer is not the only one doing this. Other developers are offering ABSD rebates without it being reflected in the caveats using the same methods.
I feel that it is high time that URA takes action to close this loophole. If the MAS guidelines requires the discount to be reflected in the loan valuation, I can see why URA should not impose the same for caveats. The caveats should reflect the true market reality.
walkthetiger
24-08-14, 18:43
Consequence is this. The URA caveats does not reflect the discounts given by some developers. So, the fall in property price is, in reality, much more severe than what the index suggests. By definition any reported property index that relies on the URA caveats are not reflecting the discounts given by the developer and therefore not truly reflective of the market situation. Vermont's developer is not the only one doing this. Other developers are offering ABSD rebates without it being reflected in the caveats using the same methods.
I feel that it is high time that URA takes action to close this loophole. If the MAS guidelines requires the discount to be reflected in the loan valuation, I can see why URA should not impose the same for caveats. The caveats should reflect the true market reality.
Crazy.. if that index is not reporting the real fall in property price...All CMs will be there forever and this is all developers are wishing for?..
Yes...MAS and URA should close this loophole, help them with evidence to catch a few red handed....
bargain hunter
24-08-14, 22:16
i think there was a time when far east projects were like this, that was followed by URA's announcement that it was intending to put a stop to it. After that, most projects reflected the true price until the Vermont (non discounted price) and The Crest (ABSD rebate) recently.
what is more ridiculous is this: say for e.g. the usual practice for some developers like far east, maybe bukit sembawang etc, have a list price. then give 2, 5, 10, 14 or 20% discount off that list price. in vermont's case, there is obviously a small discount given off this list price between 2010 to 2013. and now, they give a big discount. but the caveat lodged seems to be actually the list price. I found 2 peculiar jul 2014 caveats with "higher" prices vs comparables:
#12-06
13 SEP 12
1,432 SQFT
$2,464 PSF
$3,528,000
#10-06
13 SEP 12
1,432 SQFT
$2,464 PSF
$3,528,000
#11-06
4 AUG 14
1,432 SQFT
$2,536 PSF
$3,631,000
so the impression is not only has prices not gone down, it has gone up!
also,
#17-03
10 APR 12
1,410 SQFT
$2,364 PSF
$3,333,000
#16-03
6 AUG 14
1,410 SQFT
$2,401 PSF
$3,385,000
I was there with the Vermont Marketing Agents. This is what was explained to me by the Agents: The full undiscounted price is reflected in the Sale and Purchase Agreement. The buyer signs a side letter which states that upon full completion of the purchase, ie payment of 100% of the purchase price to the developer, the developer will issue a cash refund of of the 20% (or whatever) discount back to the Buyer. This way, the full purchase price (without the discount) is reflected in the caveat. I ask why the developer is doing this and the answer is to protect the original buyers from the fall in price. I then said that the original buyers will surely know about the discount, to which the Agents just smiled and shrugged their shoulders.
It is strange that for the purpose of the loan to value, MAS guidelines says that the purchase price must be netted of with any rebates. So, in Vermont's case, the bank must value the property less the discount. But URA's caveat reflects the higher undiscounted price. It appears that MAS is ahead of the curve compared to the URA. There were news report early last year that URA was intending to put a stop to this practice of not reflecting the discount in the caveat. But there has been no word from URA.
Consequence is this. The URA caveats does not reflect the discounts given by some developers. So, the fall in property price is, in reality, much more severe than what the index suggests. By definition any reported property index that relies on the URA caveats are not reflecting the discounts given by the developer and therefore not truly reflective of the market situation. Vermont's developer is not the only one doing this. Other developers are offering ABSD rebates without it being reflected in the caveats using the same methods.
I feel that it is high time that URA takes action to close this loophole. If the MAS guidelines requires the discount to be reflected in the loan valuation, I can see why URA should not impose the same for caveats. The caveats should reflect the true market reality.
Crazy.. if that index is not reporting the real fall in property price...All CMs will be there forever and this is all developers are wishing for?..
Yes...MAS and URA should close this loophole, help them with evidence to catch a few red handed....
The evidence is already in the URA website, no less:
https://www.ura.gov.sg/realEstateIIWeb/price/submitSearch.action
According to Developer's filing with the URA, the median pricing for the 37 units sold is $2113 psf. Highest is S$2371 psf and lowest is $2012 psf.
The URA caveats on the recent sales (10 so far) is showing a highest psf of $2561 psf and lowest of S$2291 psf, which,although only 10 out of 37 caveats are reported, are clearly higher than the Developer's reported figure.
I think we can guess what the Developer will argue: "The caveats are lodged by the purchaser and its financier, nothing to do with us. We, the developer, reported to the URA accurately. Nevermind that the caveats are misleading. Not our problem.".
As Bargain Hunter said, if URA continues to do nothing, the caveats not only have failed to show a falling price, but perversely, an increasing price as the full undiscounted list price is reported in the current 37 sales whereas the discounted (albeit slight) purchase price were reflected in the earlier purchases. If this is not a misleading picture of the property market, I don't know what is ! I think it is time for URA to recognise this loop hole and close it asap for the health of the property market. MAS has already done so, and I am not sure why URA has not kept up.
The interesting thing to me is that to avoid revealing on the caveats the true price paid the developers are prepared to pay a chunk of additional stamp duty, eg on a 4,000,000 property , the discount is 800,000 assuming on average ssd+sd is around 8% (say PR buyer or citizen with a single property ) then they are paying 64,000 extra in Stamp duty over what could be paid on the transaction , just to keep the illusion of higher prices going , the dollar question is , is it worth it ???
walkthetiger
25-08-14, 11:50
Home developers required to disclose discounts and benefits given to buyers
SINGAPORE: Parliament on Monday passed amendments to the Housing Developers Act, requiring private residential developers to disclose and publish all rebates, discounts or other benefits extended to home buyers.
The Act functions as a safeguard for the interests of buyers of uncompleted private residential properties through the control and licensing of housing developers.
Senior Minister of State for National Development Lee Yi Shyan said: “Over the years, we have noticed more and more developers offering discounts to home buyers. More recently, some developers have started to mark their units at higher prices, while offering significant discounts through rebates and other benefits such as furniture vouchers. Such inflated sale prices mask the real transacted prices and undermine transparency in the property market.”
Mr Lee said developers must provide accurate information on residential transactions to the Controller of Housing, as they would to the Monetary Authority of Singapore, for the purpose of loan applications.
This includes the reimbursement of any stamp duty or tax granted to home-buyers.
The Act has also been amended to give the Controller of Housing legal powers to collect and publish information pertaining to building projects and sale transactions. Mr Lee said the data will be published to aid home-buyers in their decision making.
Under the new rules to improve governance, developers will now have to make their audited financial positions public. Should they fail to furnish information concerning the sale of a project, for example, their licences can be revoked or suspended.
Those who fail to comply with any of the conditions spelt out in their licences will also face heftier fines.
The maximum fine has been raised by five times to S$100,000, compared to the previous S$20,000. They can also imprisoned up to three years.
The Act has also been amended to give the National Development Minister powers to set rules regulating the marketing and promotion of residential units beyond the existing regulatory scope of advertisements.
Should report to relevant gov agency, if anybody knew any developer is against the new rule.
The interesting thing to me is that to avoid revealing on the caveats the true price paid the developers are prepared to pay a chunk of additional stamp duty, eg on a 4,000,000 property , the discount is 800,000 assuming on average ssd+sd is around 8% (say PR buyer or citizen with a single property ) then they are paying 64,000 extra in Stamp duty over what could be paid on the transaction , just to keep the illusion of higher prices going , the dollar question is , is it worth it ???
Yes, this is exactly the question I posed to the Vermont Agents. Why am I paying unnecessary stamp duty. It appears that the developer wants to maintain the caveat prices to placate the earlier purchasers..
Home developers required to disclose discounts and benefits given to buyers
SINGAPORE: Parliament on Monday passed amendments to the Housing Developers Act, requiring private residential developers to disclose and publish all rebates, discounts or other benefits extended to home buyers.
The Act functions as a safeguard for the interests of buyers of uncompleted private residential properties through the control and licensing of housing developers.
Senior Minister of State for National Development Lee Yi Shyan said: “Over the years, we have noticed more and more developers offering discounts to home buyers. More recently, some developers have started to mark their units at higher prices, while offering significant discounts through rebates and other benefits such as furniture vouchers. Such inflated sale prices mask the real transacted prices and undermine transparency in the property market.”
Mr Lee said developers must provide accurate information on residential transactions to the Controller of Housing, as they would to the Monetary Authority of Singapore, for the purpose of loan applications.
This includes the reimbursement of any stamp duty or tax granted to home-buyers.
The Act has also been amended to give the Controller of Housing legal powers to collect and publish information pertaining to building projects and sale transactions. Mr Lee said the data will be published to aid home-buyers in their decision making.
Under the new rules to improve governance, developers will now have to make their audited financial positions public. Should they fail to furnish information concerning the sale of a project, for example, their licences can be revoked or suspended.
Those who fail to comply with any of the conditions spelt out in their licences will also face heftier fines.
The maximum fine has been raised by five times to S$100,000, compared to the previous S$20,000. They can also imprisoned up to three years.
The Act has also been amended to give the National Development Minister powers to set rules regulating the marketing and promotion of residential units beyond the existing regulatory scope of advertisements.
Should report to relevant gov agency, if anybody knew any developer is against the new rule.
The problem is that the Developer are already reporting the net prices to the Controller - that's why we know the median pricing for the Vermont units is 2133 psf. The issue is with the caveats. The caveats are lodged by the purchaser/financiers who will use the price stated in the Sale and Purchase Agreement. In effect, the Developer is pushing the "liability" for misreporting to the Purchaser/financier.
This news article came up in April 2013. Obviously, this hasn't stop the Vermont situation from happening. This loophole needs to be closed.
bargain hunter
25-08-14, 13:31
so everything has been settled, e.g. loan loophole, developer reporting loophole, except URA caveats?
bargain hunter
25-08-14, 13:37
http://www.stproperty.sg/articles-property/singapore-property-news/property-price-transparency-will-govt-tackle-caveats-data-next/a/115494
hmm, everything which we have discussed had already been discussed in April last year and URA had actually already given a reply in the follow up article:
Property price transparency: Will govt tackle caveats data next?
Incentives given in delicensed projects may not be captured in current data
The Business Times - April 23, 2013
By: Kalpana Rashiwala
| More
Property price transparency: Will govt tackle caveats data next?
DESPITE the recent amendments to the Housing Developers (Control and Licensing) Act, units sold by developers in projects which have been delicensed will continue to escape the radar of monthly sales information submissions to the Urban Redevelopment Authority (URA).
Developers who have obtained a Certificate of Statutory Completion for a private residential project and individual titles for all units in the development may apply to the Controller of Housing (COH) to have the project delicensed. This enables the developer to take out the remaining monies in the project account and close it.
Even prior to the changes to the Act which took effect on April 8, developers were spared having to make monthly submissions to URA on the sales status for such delicensed projects.
As for projects which are still covered by a Housing Developers' Licence, developers have had to submit to COH each month information such as the number of units sold in the project and their prices, based on information in the options granted.
The shortcoming of price data gathered through this exercise is that typically it would not factor in incentives not received by the buyers at the point they were granted the option to purchase a property from a developer. These could include reimbursement of stamp duty and furnishing vouchers. Such incentives are typically given by the developer later, after the point where the buyer would lodge a caveat to protect his interest in the property. (Caveats are usually lodged by buyers after the option to purchase is exercised or a sales and purchase agreement is signed.)
In such cases, price information on private homes bought from developers - whether gathered from URA's monthly survey of developers or based on information in caveats - may be inflated. When such data is fed into URA's private home price indices, this could mean that the indices may not be an accurate depiction of property price trends.
Timely information
The amended Act empowers COH to require licensed developers to disclose to it all discounts, rebates and other benefits including reimbursement of any stamp duty or tax given to home buyers. And the frequency of submissions as well as publication of such information will soon be made weekly, instead of monthly. The goal is to provide timely information to the market.
However, as a developer of a delicensed project does not come under the ambit of the Act for that particular project, market watchers point out that developers of delicensed projects continue to be spared from making such disclosures to URA. Hence they continue to have an avenue to dish out incentives to buyers away from public glare. This may be particularly relevant for high-end projects, where sales have been relatively slow.
As a result, the headline pricing for a project can be maintained, or perhaps even show an increase - which keeps earlier buyers happy. But the final price the developer pockets, net of all incentives, could be much lower.
Some analysts suggest that such inflated price data could mean that URA's price index for non-landed private homes in Core Central Region may be artificially high.
When queried, URA's spokesperson said: "Typically, new private residential projects have very few unsold units at the point of delicensing by the Controller of Housing, which usually occurs about one to two years after a project is completed, that is, obtains Temporary Occupation Permit (TOP). For instance, developers subject to Qualifying Certificate requirements are compelled to sell their units within two years of obtaining TOP for their projects."
Undertaking
Looking ahead, URA said that the number of unsold units in delicensed projects is likely to be even less significant since developers, when they buy a residential development site, have to undertake to complete developing the project on the site and selling all its units within five years to qualify for upfront remission of the 15 per cent Additional Buyer's Stamp Duty (ABSD) for the site's purchase. If they fail to do so, ABSD with interest becomes payable immediately upon the expiry of the five years.
"Given the low volume of transactions from such delicensed projects, they are not likely to have a significant impact on URA's overall property price index, which is computed using a large base of all sales of private residential properties (that is, in both the primary and secondary markets)," said URA's spokeperson.
Even if developers' sales of delicensed projects in prime locations may not have a big impact on URA's price index, property market participants should have access to true prices of property transactions, net of all sweeteners.
URA's spokesman said the authority will "work together with other relevant government agencies towards consistent reporting of prices for all sales of private residential properties".
Market watchers guess it would be logical for the authorities to tackle the lodging of caveats, which is under the purview of Singapore Land Authority. The purpose of a property buyer lodging a caveat is to protect his legal interest in the property. While the price is also indicated, the finer details such as whether it is before or net of discounts and other incentives, is not the main point of the whole exercise. But things could change.
walkthetiger
25-08-14, 20:03
Property price transparency: Will govt tackle caveats data next?
Incentives given in delicensed projects may not be captured in current data
The Business Times - April 23, 2013
....When queried, URA's spokesperson said: "Typically, new private residential projects have very few unsold units at the point of delicensing by the Controller of Housing, which usually occurs about one to two years after a project is completed, that is, obtains Temporary Occupation Permit (TOP).
Undertaking
Looking ahead, URA said that the number of unsold units in delicensed projects is likely to be even less significant since developers, when they buy a residential development site, have to undertake to complete developing the project on the site and selling all its units within five years to qualify for upfront remission of the 15 per cent Additional Buyer's Stamp Duty (ABSD) for the site's purchase. If they fail to do so, ABSD with interest becomes payable immediately upon the expiry of the five years.
"Given the low volume of transactions from such delicensed projects, they are not likely to have a significant impact on URA's overall property price index, which is computed using a large base of all sales of private residential properties (that is, in both the primary and secondary markets)," said URA's spokeperson.
Even if developers' sales of delicensed projects in prime locations may not have a big impact on URA's price index, property market participants should have access to true prices of property transactions, net of all sweeteners.
URA's spokesman said the authority will "work together with other relevant government agencies towards consistent reporting of prices for all sales of private residential properties".
..... But things could change.
Had been more than a year since Apr 13, maybe it is time to review the words "typically", "usually", "are not likely" and "may" now.... would be better if it is more precise...hope the old man agrees..
Had been more than a year since Apr 13, maybe it is time to review the words "typically", "usually", "are not likely" and "may" now.... would be better if it is more precise...hope the old man agrees..
While URA is probably right that 37 transactions will have a minimal impact on the overall property index, but it will have a massive impact on the price index for CCR. A discount of 10-15% on 37 units will surely have a significant impact on the price index for CCR. There are not that many CCR transactions in the first place. So, if this discounts are reflected in the caveats for the 37 units, the usually reported 2-4% monthly fall in the CCR prices will probably edge closer to 10% fall.
Given the large number of unsold stocks in all sectors (not only CCR), if every developer starts doing the same, won't the index be artificially inflated. I don't really get the URA's argument. They are implying that only CCR developers are giving discounts, but it could be any developer with many unsold units with original purchasers to "protect".
This is not the first, and will not be the last...
The practise of giving renovation vouchers, furniture vouchers have been going on for years and nothing have been done to deduct this from the caveat price.................. :disgust:
Basically these people are trying to manipulate and provide false information to the authority and URA is sleeping....
Just like all those free planter areas, bay windows, and now free 10% balcony space and BCA is sleeping too!..........
i think there was a time when far east projects were like this, that was followed by URA's announcement that it was intending to put a stop to it. After that, most projects reflected the true price until the Vermont (non discounted price) and The Crest (ABSD rebate) recently.
what is more ridiculous is this: say for e.g. the usual practice for some developers like far east, maybe bukit sembawang etc, have a list price. then give 2, 5, 10, 14 or 20% discount off that list price. in vermont's case, there is obviously a small discount given off this list price between 2010 to 2013. and now, they give a big discount. but the caveat lodged seems to be actually the list price. I found 2 peculiar jul 2014 caveats with "higher" prices vs comparables:
#12-06
13 SEP 12
1,432 SQFT
$2,464 PSF
$3,528,000
#10-06
13 SEP 12
1,432 SQFT
$2,464 PSF
$3,528,000
#11-06
4 AUG 14
1,432 SQFT
$2,536 PSF
$3,631,000
so the impression is not only has prices not gone down, it has gone up!
also,
#17-03
10 APR 12
1,410 SQFT
$2,364 PSF
$3,333,000
#16-03
6 AUG 14
1,410 SQFT
$2,401 PSF
$3,385,000
11. Trilinq at Clementi
Ok new prices for Trilinq are here!
The big units (3BR and up) gets much more discounts!
1BR: From $769k (#02-24 538sqft $1430psf) Was $796k ($1480psf)
2BR: From $1.022m (#03-01 710sqft $1439psf) Newly-released stack
3BR: From $1.245m (#03-14 936sqft $1330psf) Was $1.301m ($1390psf)
4BR: From $1.332m (#04-19 1109sqft $1201psf) Was $1.506m ($1358psf)
Call Jonathan at 96882200 now for a further discussion.
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