http://www.straitstimes.com/PrimeNew...ry_742374.html
BUYERS SAY:
First-timers cheer move; others get cold feet
Published on Dec 8, 2011
By Esther Teo, Property Reporter
EARLY reactions to the latest round of property market measures were mixed though the consensus seems to be that home prices will moderate.
First-time Singaporean home buyers generally cheered the move, as they believe it will now be easier for them to get a foothold on the property ladder. Many have been concerned that foreign buyers, especially those purchasing mass-market homes, have been driving prices up.
But some foreigners and permanent residents (PRs) expressed disappointment at the measures, which they labelled as 'harsh'.
The hardest hit will be foreigners who are not PRs. They will be slugged with an additional 10 per cent on any home purchase, on top of the existing stamp duty of about 3 per cent.
For a foreigner buying a $1 million home, the stamp duty will jump significantly to $124,600 from $24,600.
PRs will also be slapped with a 3 per cent additional stamp duty for their second and subsequent home purchases while Singaporeans will face the same charge only for their third and subsequent buys.
Property agents say that foreign buyers are likely to put any home purchases on hold in anticipation of prices dropping as the new measures take effect.
Some agents have already reported deals falling through in the first few hours after the measures were unveiled.
PropNex chief executive Mohamed Ismail said that two of his firm's foreign clients pulled out of separate deals at Marina Bay Residences. Another backed out of a deal for an Orchard Road property.
'Although one was already at his third viewing and will be unaffected if he closed the deal by today, he saw no point because prices might drop,' he said.
Mr Ismail added that the measures did not seem to be 'well thought through' as their blanket application will adversely affect the high-end market in particular.
He suggested that the additional buyer's stamp duty be applied in a more targeted manner instead. For example, it could be applied to mass-market homes of less then $1,500 per sq ft so that the segment remained largely for Singaporean buyers, he said.
A Chinese buyer who wanted to be known only as Mr Chen said that he was surprised at how 'harsh' the new rules were. He had flown in from Shanghai last week to visit some friends but also to explore the possibility of buying a home in the prime districts of 9, 10 and 11.
He said that he would put his plans on hold until the market situation became clearer.
However, first-time Singaporean buyers and upgraders like human resource executive Germaine Lim welcomed the news, which they hope will bring prices down.
Ms Lim, 29, said: 'Hopefully, without foreigners competing with us, we can finally find something within our budget.'