The full article can be found in The Business Times, Top Stories Section, Page 2, 25 July 2018.
In the latest round of property cooling measures, developers buying residential properties for housing development are required to pay an additional buyers’ stamp duty (ABSD) of 5 per cent that is non-remissible under the Remission Rules, a 10-percentage point increase in the remissible ABSD to 25 per cent for entities, as well as tightened loan-to-value (LTV) limits.
In response to the increased ABSD, developers would now require more time to observe and re-assess the market and some projects that have already launched their tenders are extending their deadlines. This includes the tender for Horizon Towers, which closing date was 7 August, but will now close on 12 September 2018. Lakeside Apartments and Dalvey Court have also extended their tender closing date from 24 July to 21 August, and 2 August to 30 August respectively.
“Everyone is trying to rework their numbers and seeing how things go in the government land sales (GLS) market or new launches market,” said SLP International’s real estate investment sales division director, Kevin Lim. “Once the tender closes, you’ll hit the 10-week private treaty period, so there’s no need to rush into it,” he added.
Meanwhile, various billion-dollar en bloc projects – Ivory Heights, which marketing agent is SLP, and Pine Grove – continue to inch closer to the 80 per cent mandate as they approach the 12-month deadline. Ivory Heights has attained 74 per cent owner’s consent thus far.
Kevin said that while some are concerned about both cooling measures and questions about the fallout from any delay in the High Speed Rail, other owners still want a shot at selling their homes since they have come so far in the collective sale process.
ZACD Executive Director and Chief Investment Officer, Nicholas Mak said, “When development charge rates are reviewed, a potential increase in such rates could be a bit of a double whammy for a certain number of sites, but not those that do not have any development charges payable to begin with.”
Click here to read the full article.