Feb 27, 2012 | Comments 3
After a strong performance in January, it looks like the residential property market in Singapore is set to feel the affects of the cooling measures set forth in December.
Experts are predicting prices will fall as much as 12 per cent in the next three months.
“The additional stamp duties hinder upgraders, which form up the majority number of the mass market purchasers,” ECG Property managing director Shawn Tan told MediaCorp. “We should be seeing a bit of correction in prices, say 8 per cent to 12 per cent for the next two to three months”.
The additional buyers’ stamp duty adds between 3 and 10 per cent. It was passed in December in a government effort to slow what was seen as runaway market increases.
January saw strong sales, but analysts are chalking up the number to a fluke of several popular properties being launched, rather than broad-based market strength.
“Four projects sold 770 units, 387 units, 198 units and 172 units, respectively. Combined, they made up 73.5 per cent of the 2,077 total units sold in January,” said SLP International Property Consultants executive director Nicholas Mak. He added that, excluding these four new launches, “sales volume would be a mere 550 units, close to the 670 units sold in December 2011, which was the lowest for the year of 2011″.
Meanwhile, analysts say attractive offers from developers contributed to the increased sales in new projects last month.
“Developers are giving perks, rebates and renovation vouchers in return to cushion off the ABSD. Hence, the impact may not be felt greatly by the purchasers,” Tan said.
The luxury condominium market continued downward with units sold in the core central region posting a 51-per-cent decline on-month in January.
However, analysts expect sales of local properties for investment purposes will stay healthy, since Singapore still has relatively low property prices compared to other Asian cities such as Hong Kong.