The REDAS or Real Estate Developers’ Association of Singapore can’t find any significance in implementing new policy related to cooling measures knowing that Singapore property development industry still under a system of recovery related to economic fundamentals, Channel News area reported.
Among the new policy set by the Singapore authority focus in ABSD or Additional Buyer’s Stamp Duty are the five percent point increased rates rendered to every legal Singaporean citizens and who are PRs or permanent residents acquiring the next homes along with a five percent point hooking in loan-to-value (LTV) utmost to every residential developments issued by credible financial entities.
REDAS have observed that the real estate industry of Singapore is booming since the previous year. A fearless forecast was given, by 2017 December, the economy will hit 3.5 percent and incoming 2018, the first quarter, expect a 4.4 percent economic growth.
However, the transaction sale bulk is on average and maintained within industry’s market expectation provided that real estate market had been gloomy since 2013, told REDAS.
This is taking place while the buyers stayed price – sensitive while the ongoing sizable Additional Buyer Stamp Duty ( ABSD) and Total Debt Servicing Ratio (TDRS) continued to subdued Singaporeans and foreign buyers.
Having this, the property industry system understands that, the real estate property market “must be given the chance to reach a maximum sustained stability.”
REDAS stressed that there is no need to implement any additional policies on the side of the developers.
REDAS said, ” As is, in the acquisition of areas straight from Government Land Sales or GLS programme or collective areas of private entity to fill up over land bank to sustain the operation, developers are compelled with convergence of financial factors, tough unkind business policies and this doesn’t exclude the functional ABSD over developers and demanding conditions to most developers, majority are foreign companies.”
“It would always the goal o Singapore to achieve a vibrant real estate company and a sustainable growth both for investors and homeowners in the longest term.”