What developers do or will do post 8 Dec 2011 CM

[Leeds]

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]

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

[mcmlxxvi]

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.

[azeoprop]

Maybe all the developers shut down all showflats for 3 months as a protest to the new policy.

[lordhawk]

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?

[ysyap]

Developers up prices by 11% and then give upfront 10% discount so they are actually selling at 99.9% of current price...

[Amber Woods]

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.

[DC33_2008]

Bascially saying that developer cannot drop price but ask agent to give discount to the buyer unofficially.

[devilplate]

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!!!!!!!!!!!!!!!!!

[august]

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.

[devilplate]

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.

foreigners can buy landed meh??

WTF!!!!!!!!!????????????

[ysyap]

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!

[Montaigne]

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..

[avo7007]

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.

[Montaigne]

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 No wonder no consultation with redas la haha...Developers cham.

[devilplate]

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 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]

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]

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]

can consider espada as well

in line wif my strategy of getting ccr ppty.....viva/1devon

[devilplate]

can consider espada as well

if budget allows, better hoot bigger unit during downcycle

[Regulators]

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]

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

[radha08]

if budget allows, better hoot bigger unit during downcycle

apt 1500sqft and above

landed 4000sqft and above

[ysyap]

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?

[teddybear]

Wait for 2-3 years, can demand 60% discount from current price!

Wait another 3 months, can demand for 30% discount from current price liao... Lol!

[yaozong7]

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......

[ysyap]

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...

[yaozong7]

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...

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]

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

[august]

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.