• About Us
    • Fact Checking Policy
    • Ownership & funding information
    • Volunteer
  • Subscribe
  • Letter submission
    • Submissions Policy
  • Contact Us
The Online Citizen Asia
  • Opinion
    • Editorial
    • Commentaries
    • Letters
    • Comments
  • Current Affairs
    • Singapore
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Arts & Culture
    • Consumer Watch
    • NGO
    • Lifestyle
    • Travel
  • Politics
    • Civil Society
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
No Result
View All Result
  • Opinion
    • Editorial
    • Commentaries
    • Letters
    • Comments
  • Current Affairs
    • Singapore
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Arts & Culture
    • Consumer Watch
    • NGO
    • Lifestyle
    • Travel
  • Politics
    • Civil Society
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
No Result
View All Result
The Online Citizen Asia
No Result
View All Result

Say it until it comes true

by onlinecitizen
15/03/2016
in Property
Reading Time: 4 mins read
0

By Property Soul
In my twelve years studying in a Catholic girls school, I was taught to pray if I need to. Till today, whenever I run into troubles, I just keep praying. And I also visit different temples to say the same prayer just in case. I believe that, in the end, some God will do something. It may have nothing to do with my devotion, but the fact that God just can’t stand my nagging any more.
Play it again, Sam

I am not alone.
Recently, stakeholders in the property industry are sharing the same belief: The more you say it, the more chances your wish will come true.
On February 18, President of REDAS (Real Estate Developers’ Association of Singapore) Augustine Tan claimed that there is an “urgent need” to bring stability and ensure a soft landing in the property market “to prevent further damage to the fragile economy”.
A week later, Kwek Leng Beng, Chairman of Hong Leong Group and City Developments, told the press that the government will press the button at the right time. He suspected that the Additional Buyer’s Stamp Duty (ABSD) will be abolished first and he hoped that the authority would do it sooner rather than later.
Not long ago in July 2014, Mr Kwek had told the government to review the cooling measures, or risk losing property investment dollars to other countries.
This Wednesday PropNex put forward a proposal to advise the government why and how to tweak property cooling measures, including loosening ABSD, loan-to-value limits and Mortgage Servicing Ratio.
See how the industry stakeholders are singing the same tune. Their philosophy is: If you want the government to do something, you have to say it again and again.
If you build it, they will come?
But the question is: What make them think that their problem will be solved if the government relax the cooling measures tomorrow?
No one can tell what will happen tomorrow. The uplift of property buying restrictions can be coincided with an untimely stock market clash, financial crisis or economic recession.
In 2005, the government introduced a series of property measures trying to stimulate the property market. That’s when loan-to-value limit was raised from 80 percent to 90 percent. But still, there were few takers.
What the developers and their marketing agents really want is to offload the unsold units to the buyers. Never mind the fact that, the moment buyers sign the Option to Purchase, they are bound by the rules of TDSR, ABSD and Seller Stamp Duty. Buyers are exposed to the risks of supply glut, soft rental, interest rate hike and economic downturn.
Afterall, it is no longer the developers’ problem once their problem becomes someone else’s problem.
Many projects in the market now are on sites where developers bought from the government at all time high. But just because developers have submitted a high bid to secure the land parcels doesn’t mean that buyers have to foot the bill.
Two ways to save the bell
There are two feasible solutions to help clearing developers’ outstanding stock:
1. Stimulate the demand
The government can loosen the existing property cooling measures in TDSR, stamp duties and loan-to-value limits. Or it can increase housing demand by import of more foreigners.
On the other hand, developers can offer attractive discounts on their unsold units. Potential buyers might be tempted to take the plunge if the price is right. Lowering prices can make the units more affordable which automatically expands the pool of buyers.
2. Limit the supply
slaThis is under the complete control of Singapore Land Authority. The government has announced that it would cut land sales. But in the first half of 2016, it is still be selling three confirmed residential sites and another eight sites on the reserve list, with the potential to build 7,420 new homes. This is on top of the 7,825 homes from residential sites released by Singapore land sales in second half of 2015.
REDAS claimed that, as of end of last year, there are over 60,000 units in the pipeline and a record 26,500 vacant units.
There is no way for developers to clear their stock if there is incessant supply in the pipeline.
Developers fighting an uphill battle
Developers have five years to sell all units in a residential project, or pay ABSD on the unsold units. REDAS’ Mr Tan estimated that there are some 700 unsold units from 13 projects that will be affected by the Qualifying Certificate rule by the end of this year, with extension charges amounting to S$100 million.
This is under the law that developers have to obtain Temporary Occupation Permit (TOP) for their projects five years after the land sales and sell all the units two years after TOP. Failing to do so, they have to pay extension charges of 8 to 24 percent of the land cost in the subsequent years. Moreover, land purchased after Dec 8, 2011 are subject to ABSD of 10 percent after five years. The first batch of projects to pay ABSD will be in December this year.
Of course, developers can take the easy way out by selling the unsold units to an investment holding subsidiary or a cash-rich corporate buyer. Or they can simply unlist from the Singapore stock exchange.
Look like industry stakeholders have no choice but continue their prayers until they see the silver lining.
This article was first published at
propertysoul.com
 

For just US$7.50 a month, sign up as a subscriber on The Online Citizen Asia (and enjoy ads-free experience on our site) to support our mission to transform TOC into an alternative mainstream press.

Related Posts

Singapore warns slower economic growth in 2023
Labour

Less than 1 in 10 jobs created in first three quarters of 2022 went to Singaporeans?

28/01/2023
Peru Congress rejects president’s plan for early elections
AFP

Peru Congress rejects president’s plan for early elections

28/01/2023
UMNO purging members as it sacks former health minister Khairy and suspended ex-defence minister Hishammuddin
Malaysia

UMNO purging members as it sacks former health minister Khairy and suspended ex-defence minister Hishammuddin

28/01/2023
WHO panel in talks on COVID emergency status
AFP

WHO panel in talks on COVID emergency status

27/01/2023
AFP

Two years after Myanmar coup, UN says situation ‘catastrophic’

27/01/2023
Grab driver supposedly earned $5,227.82 in a week prior CNY, netizens voice worries over his health
Community

Grab driver supposedly earned $5,227.82 in a week prior CNY, netizens voice worries over his health

27/01/2023
Subscribe
Connect withD
Login
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
Notify of
Connect withD
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
0 Comments
Inline Feedbacks
View all comments

Latest posts

Singapore warns slower economic growth in 2023

Less than 1 in 10 jobs created in first three quarters of 2022 went to Singaporeans?

28/01/2023
Peru Congress rejects president’s plan for early elections

Peru Congress rejects president’s plan for early elections

28/01/2023
UMNO purging members as it sacks former health minister Khairy and suspended ex-defence minister Hishammuddin

UMNO purging members as it sacks former health minister Khairy and suspended ex-defence minister Hishammuddin

28/01/2023
WHO panel in talks on COVID emergency status

WHO panel in talks on COVID emergency status

27/01/2023

Two years after Myanmar coup, UN says situation ‘catastrophic’

27/01/2023
Grab driver supposedly earned $5,227.82 in a week prior CNY, netizens voice worries over his health

Grab driver supposedly earned $5,227.82 in a week prior CNY, netizens voice worries over his health

27/01/2023
Philippines to appeal ICC resumption of drug war probe

ICC grants new inquiry into Manila’s deadly ‘war on drugs’

27/01/2023
Minister refutes claims of Malaysia consulting Singapore on housing policy due to its inefficient civil service

Minister refutes claims of Malaysia consulting Singapore on housing policy due to its inefficient civil service

27/01/2023

Trending posts

Two Indian nationals paid about S$330 and S$730 respectively for forged certificates submitted in their S-Pass application

MOM found issuing EPs meant for foreign PMETs to PRC waitress and general worker

by Correspondent
26/01/2023
40

...

Earning only S$400 a month, delivery-rider turned hawker threw in the towel after two years of running a rojak stall

Earning only S$400 a month, delivery-rider turned hawker threw in the towel after two years of running a rojak stall

by Yee Loon
26/01/2023
24

...

Ho Ching breaks silence over Temasek’s write down of its US$275 million investment in FTX, says it “can afford to be contrarian”

US regulator questions VCs’ due diligence work prior to investing in FTX; Ho Ching says Temasek can afford to be contrarian

by The Online Citizen
24/01/2023
28

...

Indian rupee falls 60% since signing of CECA while Singapore becomes top investor in India

by Correspondent
25/01/2023
56

...

Temasek and GIC reportedly in talks with Adani Group accused of “brazen” market manipulation and accounting fraud

Temasek and GIC reportedly in talks with Adani Group accused of “brazen” market manipulation and accounting fraud

by The Online Citizen
26/01/2023
49

...

Say it until it comes true

by onlinecitizen
15/03/2016
0

...

March 2016
M T W T F S S
 123456
78910111213
14151617181920
21222324252627
28293031  
« Feb   Apr »
  • About Us
  • Subscribe
  • Letter submission
  • Contact Us

© 2006 - 2021 The Online Citizen

No Result
View All Result
  • Opinion
    • Editorial
    • Commentaries
    • Comments
  • Current Affairs
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Civil Society
    • Arts & Culture
    • Consumer Watch
    • NGO
  • Politics
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
  • Lifestyle
    • Travel
  • Subscribers login

© 2006 - 2021 The Online Citizen

wpDiscuz