new cooling measures effective 8dec 2011

[Regulators]

Mnd should just stick to imposing cm to counter short term speculation. Ssd already deters short term speculation so there is actually no need to impose measures to control buying activity. With a huge supply of condos coming into the market and with the latest cm, I think mnd is targeting at developers, preventing them from having brisk sales.

[DaytonaSS]

I believe this is a smart move from gov.. With additional10% can make foreigner think twice to sell their properties. It will make price stable. Also can match the demand n supply cos developer also hold new launch.

For landlords also good .. Foreigner better rent then buy. IMHO

Price is determined by demand n supply. We know 20% lessees buyers now, n we have record launches in last 10 years. So we can easily conclude

[gav108]

You are so right about this! Some of my foreign friends won't be buying already, given the stamp duty at 10%, but because they need to keep living here and work, they can only rent!
- this move is to protect the rental market.... as long as the rental market is healthy, the owners are not likely needing to sell and this will hold the market steady. I hate to say this but our government is very intelligent!!!

and if the rental market is healthy since FA can't buy but need to stay in S'pore and therefore rent, then more S'poreans will buy to become their landlords, and sustain property prices in the long term? and most Singaporeans will stick to 2 properties - 1 to stay, 1 to rent = more equal wealth distribution? this will also mean 1 ppty to 1 s'porean family not enough next time i.e. demand for ppty for rental/passive income will be sustained by s'poreans. if this scenario plays out actually not bad...

[jwong71]

1) if people buying fewer properties, and taking out fewer mortgages, what is the banks going to do with the excess funds? FD rates going to be lower? lower mortgage rates?

2) why won't developers jackup the price and absorb stamp duties. Afterall valuers go along with any price developers/banks ask for. So this measure increase new sales at the expense of subsale and resale.

before (BSD borned by buyer)
$1mil property, cash outflow = 20% DP + 3% BSD = 200k + 24600 = 224600

after (all BSD absorbed by developer).
$1.06mil property, cash outflow = 20% DP = 212000

dont think to outsmart the govt, as they have mention:

The Government will continue to monitor the property market and adjust our property policies in step with changes in the market and the economy. Mr Tharman Shanmugaratnam, Deputy Prime Minister and Minister for Finance, said, “We have always had open markets and must keep them that way. However, the reality is that investment flows into our property market are now larger than before, and unlikely to recede as long as interest rates remain low. The additional buyer’s stamp duty should help cool investment demand, and avoid the prospect of a major, destabilising correction further down the road.”

so whatever developers chu pattens to sell, the govt will come in to whack

[devilplate]

no need bah

7% FD in msia u pluck from the sky isit?

i check maybank only 3.x%

[phantom_opera]

7% FD in msia u pluck from the sky isit?

i check maybank only 3.x%

Housing loan with OCBC in MY only paying 5% .. how can FD 7% ... nonsense

[devilplate]

The cooling measure is very effective. One stone kills many birds. In a way, it is good for most Singaporeans.

good for most yes.....ocr pte ppty will drop until 40-50% above hdb resale px from current 100%

ccr rental yield oredi low.......any int rate spike will see a drastic drop in px too

coupled wif EU debt crisis......>50% drop is on the cards now

i will not touch pte ppty unless it crash >30%

next few GLS hohoho......more developer will go bankrupt like those in china

merry xmas

[hopeful]

Isn't LTV 60% for 2nd pty, and stamp duty should be BSD (3%) + ABSD (3%)? Quite a big cash outlay.....

ok, lets take LTV60% for $1mil
before (BSD borned by buyer)
cash outlay = 40% + 3% = 400k + 24600 = 424600

after (all BSD borned by developer, so jack up by 6%)
cash outlay = 40% * 1.06mil = 424000

effect on yield is minimal
same rental 3k for example
before : gross yield = 3k * 12 / 1mil = 3.6%
after : gross yield = 3k * 12 / 1.06 = 3.4%

[SpinCity]

Price is determined by demand n supply. We know 20% lessees buyers now, n we have record launches in last 10 years. So we can easily conclude

Frankly, I don't worry about CMs too much as they can be removed as fast as they were implemented. When market turns south and ppl complain, in no time they can be reversed
Actually, the most significant impact of the CMs is not on price but the policy risk. Investors will think twice or three times before they invest in SG resi properties for the next few years until they forget. Just look at how ppl in general think about investing in Malaysia properties

What really worries me are the supply and macro economy. As I mentioned before, once a unit is built, it will stay in the inventory for at least 20 years. When ample supplies come at the time when economy is uncertain and gloomy, together with rising policy risk, you know what can happen even without CMs

[SpinCity]

and if the rental market is healthy since FA can't buy but need to stay in S'pore and therefore rent, then more S'poreans will buy to become their landlords, and sustain property prices in the long term?

It may only hold true when FT are coming at the rate no less than the supply

[heroes]

If only for rental play, why come to Singapore? the rental yield is not that great compared to other part of the world
What if next CM come in to tax foreigners the property tax at 100% of annual value? Only investors become cautious about the policy risk, they may not come in at all

For me (foreigner) Singapore is still good. Rental yield avg 3.5% morgage 1.25%. pay 40% dp still make money. In indonesia rental yield 5-8%. morgage is 8.5%. pay 40% can not pay instalment. If i want diversified my asset... Hold usd not a goo choice... Hold aussie is too expensive now... Hold sgd n buy property is still reasonable for me.

[azeoprop]

Don't really like their high handed approach in making such policies....anyhow like announce new policy one....like children asking parents for money like that.

[hopeful]

dont think to outsmart the govt, as they have mention:
..............
so whatever developers chu pattens to sell, the govt will come in to whack

But BSD absorbed by developer is not yet BANNED by government right?

[devilplate]

I think what's worse is the policy risk. Investing in SG is more and more like investing in Malaysia properties
It is politically correct to make housing affordable, but the price tag is that Singapore residential properties may be off from foreign investors' radar screen
Once bitten twice shy. let's see if foreign investors will ever come back

i tink boleh land will b very very happy!!!!!!!!!!!!!!

i am now tinking of investing in boleh land......xchange rate almost at all time high too......

[peterng8]

and if the rental market is healthy since FA can't buy but need to stay in S'pore and therefore rent, then more S'poreans will buy to become their landlords, and sustain property prices in the long term? and most Singaporeans will stick to 2 properties - 1 to stay, 1 to rent = more equal wealth distribution? this will also mean 1 ppty to 1 s'porean family not enough next time i.e. demand for ppty for rental/passive income will be sustained by s'poreans. if this scenario plays out actually not bad...

the repercussions are wide for property market with this newly introduced stamp duties, prices and rental will be affected (more to stabilise to a reasonable level than to increase, take a look at various factors, u know what i mean)...BUT one thing for sure is those foreigners (be it PR or so called "FT")if YOU become a SIngaporean this is another advantage

For citizens,,,PAPA take care of you(85% HDB owners..every ELIGIBLE can own two without penalty) continue to vote for PAPA.... The MESSAGE IS CLEAR....more goodies to roll out if near 2016, hopefully...

[devilplate]

They should just fine tune d hdb system n not interfere too much on private properties.
Afterall they are private n should just let d mkt force dictate its direction.
Perhaps just change ltv to 50% for foreign buyers instead of 10% sd.

its too late liao

pte ppty maciam like HDB now

buying a pte ppty now almost as good as buying a EC from developer.......whahahahhaa

1st timer damn happy

[devilplate]

How is that good for singaporeans when the million dollar property you own becomes less desirable for foreigners to buy?

good for majority wat

all those 1st timer/only own 1 ppty damn happy....best xmas gift for them

[avo7007]

But BSD absorbed by developer is not yet BANNED by government right?

Shhhhh don't give them any idea.

[devilplate]

1) if people buying fewer properties, and taking out fewer mortgages, what is the banks going to do with the excess funds? FD rates going to be lower? lower mortgage rates?

2) why won't developers jackup the price and absorb stamp duties. Afterall valuers go along with any price developers/banks ask for. So this measure increase new sales at the expense of subsale and resale.

before (BSD borned by buyer)
$1mil property, cash outflow = 20% DP + 3% BSD = 200k + 24600 = 224600

after (all BSD absorbed by developer).
$1.06mil property, cash outflow = 20% DP = 212000

u still tink developer can up the px?

singaporeans VERY SMART one ok......how to carrot chop liao??? ZERO foreigners will buy now and only left with bargain hunters

FEO greatest impact.....how they gona price SKY HIGH without the suport from carrot head foreigners?

[jwong71]

But BSD absorbed by developer is not yet BANNED by government right?

nope, not banned. but y the sudden of ABSD..??
must be something trigger them. etc q, sale volumes...

if sales continue to shoot,prices shoot, q continue at new launches..?
any more CM to come..?

[devilplate]

If only for rental play, why come to Singapore? the rental yield is not that great compared to other part of the world
What if next CM come in to tax foreigners the property tax at 100% of annual value? Only investors become cautious about the policy risk, they may not come in at all

OCR all along mostly bot by locals mah.....only recently see more foreign interest

CCR cfm greatest hit especially those big big and expensive units

[august]

Quite a good measure, looking from several angles. Citizens happy, new PR, newer citizens, who only own 1-2 properties as of now lagi more happy.

With the exception of property agents I guess, the smart ones will be planning to do rental deals already......

Seriously, I think agents are earning too much, i.e. 1-2% of a 2 million property is alot of commission. Before the ABSD, i think they earn nearly half as much as the government's stamp duty.

yeah no sympathy for the agents, most are just crap.

[devilplate]

I believe this is a smart move from gov.. With additional10% can make foreigner think twice to sell their properties. It will make price stable. Also can match the demand n supply cos developer also hold new launch.

For landlords also good .. Foreigner better rent then buy. IMHO

all investors wif multiple units SURELY tinking of selling den buying from now onwards including me........

previously a 20% drop can entice me to buy one more....now >30% den i will look at it

[Lovelle]

7% FD in msia u pluck from the sky isit?

i check maybank only 3.x%

u deposit and see for urself

[radha08]

yeah no sympathy for the agents, most are just crap.

yup i DOUBLE agree on that except for my agent.....poor guy

[devilplate]

and if the rental market is healthy since FA can't buy but need to stay in S'pore and therefore rent, then more S'poreans will buy to become their landlords, and sustain property prices in the long term? and most Singaporeans will stick to 2 properties - 1 to stay, 1 to rent = more equal wealth distribution? this will also mean 1 ppty to 1 s'porean family not enough next time i.e. demand for ppty for rental/passive income will be sustained by s'poreans. if this scenario plays out actually not bad...

u r very positive!!!! hahaha

14100 more units coming on board in 1H2012 hohohohoho

[august]

Xiao....seems like another knee jerk measure motivated by political/election concerns. This is at odds with foreign policy and certainly going to send confusing messages to foreign investors and potential immigrants.

On the one hand, want to encourage foreign talent and investment. On the other hand, make it expensive for them to afford accomodation

Then when market crash and foreign investment dries up, they will scurry to remove all the measures or even add incentives. Instead of trying to even out the ups and downs, they are making the swings more extreme.

.

private residential supply is expected to surge going forward. Foreigners can rent at good prices and many to choose from. Good for them leh, very pro-foreigner what.

[Wild Falcon]

I think it's about time the rules hit the FOREIGNERS. Good one. The Ku Swee Yong who has been marketing "high end" property kept saying the "foreigners" are the ones who need to buy because they have settled in Singapore. Mr Ku? Hello? If the foreigners are the one settling down in SG, they would have been PR already right? In Singapore, foreigners who bought property who are NOT PR are mainly speculators with NO intention of EVER migrating here. If I'm not wrong, foreign buying (exclusing PR) is ONE-THIRD of our property, the proportion is too high.

I really hope this 10% ABSD for foreigners will stay forever and ever. It's about time we stop foreigners, mainly PRCs, from distorting our market.

[august]

all investors wif multiple units SURELY tinking of selling den buying from now onwards including me........

previously a 20% drop can entice me to buy one more....now >30% den i will look at it

if u think like this then the govt has achieved its desired effect of the latest Cm which is mostly psychological ~

[devilplate]

BUT one thing for sure is those foreigners (be it PR or so called "FT")if YOU become a SIngaporean this is another advantage

no chance......how many PR r actually buying more den one ppty? and only save puny 3% for 2nd ppty? i will not do tat

but cfm will see more foreigners applying for PR

mabe more CM will roll out soon......PR buying resale HDB goto pay 13% stamp duty and 10yr MOP.........den it will convert more PR to citizen la.....whahahaha