Singapore Eases Property Curbs After Housing Prices Decline

[weijian]

1. new SSD rules only applies to those property purchased on or after 11 Mar 2017.
    aka, those brought earlier does not benefits from the new rules.

hi chialc88,
the highlighted contradicted with what i thought. I looked at the joint statement again and you are right. I got a previous misleading post that i edited accordingly.

[chialc88]

on #3, loopholes was officially closed on 11th Mar, same time as #1 & #2.

see the edge for parliament report on 7th Mar:
Link

[karlmarx]

Lawrence Wong signalling to developers and buyers to be cautious, citing an increase in supply in the near term.

http://www.businesstimes.com.sg/real-est...rence-wong

[choya]

That explains the mini correction in property sector over past 2 days

[BlueKelah]

glad to see that the recent hype and party for property counters is over, property stocks should be getting a correction back down to pre-hype levels again.

[evolance]

Lawrence Wong signalling to developers and buyers to be cautious, citing an increase in supply in the near term.

http://www.businesstimes.com.sg/real-est...rence-wong

I found the report a bit contraditing. I didnt do any research, but assuming that the land bank sale were consistent wif previous years, we can take this out of the equation. That leaves us wif fresh supply fr en-bloc.

How is it possible within 1 to 2 yrs this enbloc land can be turned to supply. In fact, i tot there shd b surge of demand due to owner occupied units affected by enbloc.

In the longer term, Unless all this enbloc land can produce much more units by shrinking size of ea appartment, the net gain in supply shdnt be too drastic

Attempt to prevent a bubble, or am i missing smt?

[weijian]

Lawrence Wong signalling to developers and buyers to be cautious, citing an increase in supply in the near term.

http://www.businesstimes.com.sg/real-est...rence-wong

I found the report a bit contraditing. I didnt do any research, but assuming that the land bank sale were consistent wif previous years, we can take this out of the equation. That leaves us wif fresh supply fr en-bloc.

How is it possible within 1 to 2 yrs this enbloc land can be turned to supply. In fact, i tot there shd b surge of demand due to owner occupied units affected by enbloc.

In the longer term, Unless all this enbloc land can produce much more units by shrinking size of ea appartment, the net gain in supply shdnt be too drastic

Attempt to prevent a bubble, or am i missing smt?

hi evolance,
Land bank sales, for a start, is already 38% higher in 2017 compared to 2016 (the source is in the article).

With the ABSD/QC charges, developers should be incentivised to launch their projects with minimal delay. There is a difference between supply and vacancy - supply is ready for sale (whether is it under development or completed) and vacancy is strictly on completed units only - so enbloc land can be turned to supply readily - maybe in ~1year time? A surge in immediate demand (enbloc-ed owners) has nothing to do with the future supply (increased units) - it may or may not be absorbed by the existing 8+% vacancy rates - but all these point towards at least a short term increase in prices is probably inevitable?

[Triple70]

Having 8% Vacant units.. is that a bad thing? Are property owners of these vacant units even complaining? Or simply waiting for higher rental rates? Having a pool of vacant units is a healthy thing to keep rentals in check. The minister is just trying to make a point but.. it shd be taken with a pinch of salt.

[brattzz]

yes lah, this simply means that supply and demand is somewhat equalised at the moment, just wait for gov to say, GO or STOP!

[Big Toe]

This property cycle is somewhat strange. The usual cycle is a significant decline followed by a long period of inactivity.
We did not see significant decline in the residential market, thus there is no need remove most of the property curbs,
and interest rates remained low for an extended period of time. And since we are sort of in unchartered terrritory, the regulators are not sure what to do now except to ask the developers and buyers to be cautious. Whether this bounce is sustainable will very much depend on how the economy performs. Right now it seems to be gaining strength. Good chance we will see a melt up before melt down.