Time may be right to tweak property curbs: CDL chief

[CityFarmer]

The opinion from developer side. Is it the right time to do now? May be too early to do it now...

Time may be right to tweak property curbs: CDL chief

SINGAPORE — It is time for the Government to consider tweaking the property curbs in light of global economic concerns, Executive Chairman of developer City Developments Ltd Kwek Leng Beng said today (Feb 7).

Mr Kwek commended the Government’s effort in stabilising the property market since the Lehman-led crisis in 2009, but it is now time to tweak some measures as the market started to cool.
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http://www.todayonline.com/business/time...-cdl-chief

[specuvestor]

^^^ I don't remember developers ask for curbs when property prices were soaring and common man on the street groaning. Why should they then dictate when the curbs should be removed then?

Property industry experts are hoping to see a reduction of some of the previous market cooling measures in the Singapore Budget 2014, which will be revealed by Deputy Prime Minister and Minister for Finance Tharman Shanmugaratnam (pictured) on February 21.

Tweaks, or an entire roll-back of the additional buyers stamp duty (ABSD) and the total debt service ratio (TDSR) would be most welcomed by the sector.

Donald Han, Managing Director at Chesterton Singapore, said: “Our wish is for the government to consider scaling back or loosening certain measures which have yielded the desired results.”

Notably, the introduction of the ABSD as well as the seller’s stamp duty saw sub-sales and foreigners’ participation rates in the Singapore property market hit new lows, while the TDSR framework has successfully slammed the brakes on skyrocketing property prices and transaction volumes.

Han added that reviewing these policies will give foreign investors the “right signal



http://www.propertyguru.com.sg/property-...g-measures

Err right signal as in they can come mess up our asset prices and cost of living, and then run off to Australia at the first sign of hardship?

FAI is different from hot money. I don't think we need to cater to foreign investors for residential or commercial real estate. Industrial makes sense. End of day the citizens should determine asset prices as they are vested in the long term future of the country.

PS I replied here which may be more relevant

[corydorus]

When has it been our national agenda to send message to foreign investor to create bubbles in our own backyard.
I do not find it makes any sense on industrial side too.

Why can people gives sh***less advise which is quite ridiculous at mass media level.
Did our standard came down with property curbs too ?

The curb only arrest the increase. There still no punch to lower it and more measures are needed for that else all the years of measures will go wasted.

[Layman A]

What if the property curbs is released and prices starts to runaway again ?

Mr Khaw's efforts to contain the property prices in the past 3 years will go down to drain !

Remember, citizen will come back and screw you in 2016 if you mess up their future, only to benefit a few greedy developers !

[opmi]

Govt said TDSR is a long term policy. Better dig and print out the statement.
Show it to their face if they back track.

What does Govt want to achieve in the property market?
Balance between demand and supply is the stated objective.
What does that means?

[greengiraffe]

CDL chief calls for review of property cooling measures

Kwek Leng Beng points to falling prices, fears over global economy

Published on Feb 08, 2014


City Developments executive chairman Kwek Leng Beng, a prominent real estate industry veteran, called on the Government yesterday to review some of its property market cooling measures as home sales and prices fall. -- ST FILE PHOTO: ALPHONSUS CHERN

By Melissa Tan

A PROMINENT real estate industry veteran called on the Government yesterday to review some of its property market cooling measures as home sales and prices fall.

"As the property market starts to cool... this may be the right time to tweak the control measures in the light of concern over the global economy," said City Developments (CDL) executive chairman Kwek Leng Beng.

"It does take time for the medicine to work. Both the private and public sectors want a soft landing."

He was speaking at a lunch organised by the Real Estate Developers' Association of Singapore (Redas) at the W Singapore - Sentosa Cove.

Mr Chia Boon Kuah, Redas' newly re-elected president, told the lunch that a triple whammy of home loan restrictions, looming oversupply and surging labour costs has been "unnerving to developers, to say the least".

Property consultants and agents echoed Mr Kwek's views yesterday, adding that some property curbs could be modified to prevent the market from going into a tailspin.

"We need a tweak because the market is reaching a psychological fear level where crowd behaviour believes that the market is going to crash," said Savills research head Alan Cheong. "The Government could keep on top of this situation by turning that perception around, so that it doesn't become self-fulfilling."

Prices of both private and public housing fell more than expected in the final three months of last year. Private home prices slid 0.9 per cent and Housing Board resale prices tumbled 1.5 per cent - both worse than the Urban Redevelopment Authority's flash estimates.

PropNex chief executive Mohamed Ismail said: "If policies hurt the volume of transactions and prices, that is not sustainable growth. If sentiment goes negative, it takes much more time to rebound."

However, some prospective buyers said they would like the cooling measures to stay unchanged, so that prices keep going down.

"I want the measures to stay in place. The key is that I want to get a good deal," said Mr Sam Goh, 27, who runs a financial services firm. He said he was on the lookout to buy a second private home in the $400,000 to $800,000 range and had enough cash on hand. He said he did not mind paying the additional buyer's stamp duty (ABSD) as long as the overall price had dropped.

Mr Kwek said developers should "continue to work closely and collectively with the Government to ensure a sustainable property market, which is a difficult balancing task".

He was also given the inaugural Redas Lifetime Achievement Award at the lunch yesterday.

The association noted that Mr Kwek was "known for his foresight and astute acquisitions". It added that he has also helped to reform the property sector with actions such as the introduction of the Developers' Fund to protect buyers, which enforced the rule that money collected for a specific project could not be used for any other purpose.

When asked for examples of how the cooling measures could be tweaked, Mr Kwek told reporters the Government should, for instance, remove the ABSD imposed on foreigners buying property. "We should attract foreigners but... we penalise them. Why don't we just say, 'If you sell within three years, four years, then I tax you? You come in, I don't want to tax you'. I think this is one way."

ABSD for Singaporeans and permanent residents could also be removed, he suggested, adding: "I don't believe there is a lot of speculation."

melissat@sph.com.sg

[valueinvestor]

Price up 100 %, ok for them . Down 1 or 2 % , they are unhappy. Their business models are protected and guaranteed .

[Behappyalways]

The mass market compared to the 2007 before crisis price has went up by a lot while the luxury market did not move. Maybe it is time to tweak the luxury market......remove some of the measures for those condo prices above $2500 psf and above for example........

[corydorus]

There is much more impending tasks not done in mass market. Why waste time to concern about the luxury market and later entertaining possible side effects. This group do not need much help and they are fully capable of utilizing Mass Media to help them as you can see the power they can reach.

[pianist]

Govt said TDSR is a long term policy. Better dig and print out the statement.
Show it to their face if they back track.

What does Govt want to achieve in the property market?
Balance between demand and supply is the stated objective.
What does that means?

ah kwek said in today paper cooling measure announced in 2009, counting is already 5 years old..maybe that is the meaning of long term policy. the truth is no wise policy is casted in stone, maybe that what he was conveying?