Property developers 'anxious' over curbs

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http://www.straitstimes.com/archive/...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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http://www.straitstimes.com/archive/...curbs-20130216
Developers are committed to contributing to a stable and sustainable market, he noted.

Correction:
"Developers are committed to get as much profit per sales as possible."

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http://www.businesstimes.com.sg/arch...sures-20130216

Published February 16, 2013

Developers anxious about cooling measures

But they understand govt's push for soft landing of property market, says new Redas head, and support the population roadmap

By ong chor hao


THE new head of the Real Estate Developers' Association of Singapore (Redas) says developers here are "naturally anxious" about the latest round of cooling measures, but they understand the government's push for "a soft landing of the property market" and will thus support the population roadmap set out for 2020 and beyond to 2030.

Chia Boon Kuah, in his maiden speech since being elected to the post this month, noted yesterday that real estate is a cyclical business, buffeted by global economic performance, geopolitical developments and domestic market conditions.

And with property players here facing added challenges from limited land and high development costs, they are, he said, "naturally anxious" about the cooling measures implemented amid a maturing property cycle and global uncertainties.

He was speaking at Redas's annual Spring Festival lunch, at which Foreign Affairs and Law Minister K Shanmugam was the guest of honour.

Mr Chia, also the chief operating officer for property sales at Far East Organization, described the real estate industry as part of the diverse ecosystem that is Singapore's economy, and one which provides jobs and properties to families and businesses and generates dividends for unitholders in real estate investment trusts (Reits).

"As a major stakeholder in the wellbeing of our ecosystem, Redas acknowledges the government's desire to achieve a soft landing of the property market."

He said Redas would build on its role as a partner of the government to add value to national development; it will also plan for business interests to align with national objectives.

Describing the Population White Paper for Singapore up to 2030 as bold and wide-ranging, Mr Chia said: "It is a vision to ensure a good quality of life in a dynamic city with future infrastructure to accommodate an enlarged population of 6.9 million, if necessary.

"Redas stands ready to support the execution of this important blueprint."

It will, for example, set up Redas Foundation, a non-profit body to "coalesce the efforts and resources" of its members to improve the lives, living environment and the future of communities here, Mr Chia disclosed.

Redas will carry on its ongoing Redas Conversation, which runs parallel to the National Conversation; it will also continue engaging tertiary institutions and professional bodies to promote urban solutions, with a key focus on providing more elderly-friendly designs and amenities.

Speaking on the sidelines of the event, Lim Ee Seng, the second vice-president of Redas and Frasers Centrepoint chief executive, said he foresees prices stabilising the rest of this year, as buyers become more cautious. Transaction volumes could stay at about the same as last year, he added.

Wong Heang Fine, the immediate past president of Redas and chief executive of CapitaLand Residential Singapore, said it's too early to tell whether the cooling measures are working, going by the latest private home sales figures.

The Urban Redevelopment Authority (URA) said yesterday that 2,013 private residential units, excluding executive condominiums, were sold last month; this was 7.5 per cent higher than a year ago.

Mr Wong said: "Basically, the measures came in only on Jan 11. So you've got to wait a few months for them to kick in."