http://www.businesstimes.com.sg/prem...-kick-20130114
Published January 14, 2013
Showflats quiet as new cooling measures kick in
Curbs effective on Saturday includes higher stamp duty, stricter loan limits
By Mindy Tan
[SINGAPORE] Showflats were quiet yesterday, following a surge of customers last Friday eager to beat the new cooling measures which kicked in on Saturday.
The government announced its seventh and most sweeping package of property cooling measures on Friday, including higher additional buyers' stamp duty as well as stricter borrowing limits.
The executive condominium (EC) market, which has recently been in the limelight due to the increasing size and quantum of certain EC units, was one of the segments cut down to size.
According to the new rules, new units cannot exceed 160 square metres. In addition, private enclosed spaces and private roof terraces will be counted as part of the 10 per cent bonus gross floor area (GFA).
Previously, developers of non-landed private projects and ECs did not have to pay development charges for sky terraces as they were not treated as part of the GFA.
CityLife@Tampines - which saw the sale of a 4,349 sq ft penthouse unit, including a 1,600 sq ft roof terrace at $2.05 million last month - sold only two units yesterday.
The 514-unit project, which opened for bookings on Dec 29 with average prices of $770 per square foot, had only 20 three-bedroom units left for sale.
On the latest measures aimed at the EC market, National Development Minister Khaw Boon Wan noted that the size and pricing of EC units had previously been "quite moderate, and very much in keeping with what the market thinks the target buyers can afford".
"But when they start exceeding 200 sq m, and cost a couple of million dollars, one should legitimately ask how a family in the $12,000 income group can afford such a unit . . . (With the new measures) we've limited the EC size that developers can build (which) will automatically bring the price down."
International Property Advisor chief executive Ku Swee Yong demurred, arguing that the government should have capped prices instead of sizes.
He added: "Roof terraces and private enclosed spaces are now part of your GFA, but why should the review solely focus only on roof terraces and private enclosed spaces? What about developers who sell a 1,000 sq ft apartment with 30 sq ft of aircon ledges? What about voids? Double-volume units make your dollar psf seem cheap, but this fools many investors."
Instead, the government could consider introducing a ratio for balcony space to interior space, he suggested.
The showflats of two newly launched projects along Pasir Panjang - the 52-unit SeaSuites and 148-unit Village - were quiet as well.
According to marketing agents for SeaSuites, only eight units were unsold, of which half were three-bedroom configurations.
Selangor Dredging's Village, on the other hand, still had about 30 per cent of its units available for sale. The developer is offering an early bird discount of 15 per cent, a vicinity and stamp duty discount of 3 per cent each, and an additional 3 per cent discount for select units.
"Transaction volume for this month will definitely fall . . . but next month should have some recovery because in the medium term, everybody with some extra cash is already thinking, can I buy a unit in my child's name?" said Mr Ku.
"The other issue that will pan out over the next two weeks is that some of the buyers who put in cheques on Friday night will realise that no matter how much they stretch their finances, they can't meet the requirements. So there will be some cancellations."