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Thread: No sign of rethink on property cooling rules

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    Default No sign of rethink on property cooling rules

    [url]http://www.straitstimes.com/archive/saturday/premium/money/story/no-sign-rethink-property-cooling-rules-20141213[/url]

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    [B][SIZE=5]No sign of rethink on property cooling rules[/SIZE][/B]

    [B]Consultants and developers feel the measures are here to stay for now[/B]

    Published on Dec 13, 2014 1:03 AM

    By Rennie Whang


    ANYONE hoping that property cooling measures will be unwound soon will likely be disappointed, going by signals from the private and public sectors.

    One the one hand, developer Hiap Hoe has been forced to buy units at some of its projects, including all 48 at Treasures on Balmoral, in the wake of the plunging demand.

    On the other, the Government shows no sign of a U-turn, with various ministers reiterating that prices have yet to fall to any meaningful degree to warrant a rethink.

    "We do not expect the prevailing cooling measures will be lifted any time soon," said a spokesman for Hiap Hoe, which earlier this week sold the Treasures on Balmoral flats to its parent company.

    Consultants and developers say that measures addressing financial stability - the total debt servicing ratio (TDSR) - are here to stay. But if the market weakens further, there is expected to be calls for tweaking rules on taxation.

    "TDSR is a measure targeted at ensuring prudence among citizens as it takes into account all types of outstanding debt; it's a good measure that will remain," said Mr Desmond Sim, CBRE research head for Singapore and South- east Asia.

    The idea that cooling measures will be around for a while has been stated by several ministers - most recently Deputy Prime Minister Tharman Shanmugaratnam in October.

    He said that "there is some distance to go in achieving a meaningful correction, after the sharp run-up in prices in recent years".

    While Hiap Hoe's move to buy units at its projects - including Skyline 360 and Signature at Lewis - suggests that it would rather pay the Additional Buyer's Stamp Duty (ABSD) on these transactions than stump up Qualifying Certificate penalties, it appears to be a rare move for now.

    "These are different times from the global financial crisis. We are still positive in terms of economic health, and the balance sheets of developers generally remain strong," said Mr Sim.

    Developers are trying to cut holding costs while giving rebates and other incentives to move units but there are no distress sales, he said.

    Teambuild Land director Richie Chew suggested revisions for the ABSD levied on Singaporeans and permanent residents purchasing second homes, whether as future homes or as investment. "The existing TDSR means they would not be going beyond what they can afford...Tweaking some of these measures would be ideal." Sales at its Singa Hills condo have been slow, he noted.

    Developer CapitaLand said it believed the Government would review measures "in a timely manner."

    "With a resilient economy and policies to support population and economic growth, demand outlook for new homes over the long term remains positive," a spokesman said.

    R'ST Research director Ong Kah Seng suggested that it may also be timely to relook cooling measures for high-end or costlier residential properties, separating them from mass market private property.

    "High sales and leasing activity in the high-end residential segment would place Singapore on the world map for investment-grade properties," he said.

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  2. #2
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    Whenever market dont expect things to happen, that mean things is going to happen.
    "[I]Never argue with an idiot, or he will drag you down to his level and beat you with experience[/I]."

  3. #3
    OCR properties going to crash!

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    OCR private property prices will need to crash >20% first before the govt will ever do anything right?

    Quote Originally Posted by Ringo33 View Post
    Whenever market dont expect things to happen, that mean things is going to happen.

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    Quote Originally Posted by teddybear View Post
    OCR private property prices will need to crash >20% first before the govt will ever do anything right?
    How is that even be possible for the entire OCR region to crash by 20%?
    Stop dreaming lah.
    "[I]Never argue with an idiot, or he will drag you down to his level and beat you with experience[/I]."

  5. #5
    OCR properties going to crash!

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    Dreaming?
    [B][COLOR="#FF0000"]Fact is, price already falling quarter after quarter, now OCR falling much faster........................... [/COLOR][/B]
    As long as govt don't tinkle with cooling measures, drop 20% here it comes! Places like Jurong probably will drop >30% because climbed too much because of too much hype....................

    People will ask: Drop 30% wah, so what?
    Yes, but they don't remember that e.g.: start from $1, climb 60% is $1.60.
    BUT DROP 30% from $1.60 is back to $1.06!
    Minus away stamp duties, and interest paid means already lose money!
    Up and Down is not linearly comparable!


    Quote Originally Posted by Ringo33 View Post
    How is that even be possible for the entire OCR region to crash by 20%?
    Stop dreaming lah.
    Last edited by teddybear; 17th December 2014 at 08:16 PM.

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    Don't think they want to see that happen in OCR.. Mostly are locals..

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    Quote Originally Posted by cnud View Post
    Don't think they want to see that happen in OCR.. Mostly are locals..
    Less well off foreigners have been buying into OCR.

  8. #8
    OCR properties going to crash!

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    It is not a matter of whether they want to see that happen or not, but whether their policies are effective or not to lower property prices systematically, whether they want to treat all fairly or not, and whether they want to do what is economically correct but not politically/populist correct or not...

    Quote Originally Posted by cnud View Post
    Don't think they want to see that happen in OCR.. Mostly are locals..

  9. #9
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    Quote Originally Posted by teddybear View Post
    It is not a matter of whether they want to see that happen or not, but whether their policies are effective or not to lower property prices systematically, whether they want to treat all fairly or not, and whether they want to do what is economically correct but not politically/populist correct or not...
    This is not a monopoly game. It won't be totally fair or very fair, only generally fair. Govt just monitors overall indices, and it is enough work for many dedicated persons already. You seriously think they will equilibrate every region, despite each region being very heterogeneous to begin with? That kind of thoughts can only lead to disillusionment or disappointment.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

  10. #10
    OCR properties going to crash!

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    Different policies affect different segments of the properties differently. The fact that policies implemented already crashed 1 segment while holding up another segment means that the policy/combination of policies is a failure and it does not work well! Simple as that isn't it? Need to explain more?

    Ok, and if they just want to look at the overall price index, that is like a toad in the well looking up, and they are seeing that the property market is still very hot, and hence govt should not do anything until property price index crash by >30% because they have gone up by too much!!!!!!! Doing otherwise just because OCR drop a bit means, well, populist action?

    Quote Originally Posted by Kelonguni View Post
    This is not a monopoly game. It won't be totally fair or very fair, only generally fair. Govt just monitors overall indices, and it is enough work for many dedicated persons already. You seriously think they will equilibrate every region, despite each region being very heterogeneous to begin with? That kind of thoughts can only lead to disillusionment or disappointment.

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