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Singapore Property | The 2018’s property cooling measures notwithstanding, Edmund Tie and Company anticipates the prices of residential properties to remain fairly stable.

Before the most recent cooling measures that were enforced in 2018, almost identical regulations were rolled out back in 2013. The Total Debt Servicing Ratio (TDSR) plan was unveiled the same year, with the aim of moderating the private residential property market.

While the measures resulted in a decline in sales and prices in 2014, the private residential property market recorded an uptick once more in the Q2 of 2017, with the momentum spreading over to 2018.

With this, Edmund Tie and Company’s research head, Mr. Darren Teo, expect the prices of residential properties to remain stable even with the recent cooling measures in operation.

This ensues as the majority of developers unveiling new properties in 2019 had bought land expensively during the en bloc fever, which started in May 2017, notes Teo in his remarks on Channel News Asia.

Property Prices to Remain Stable Even with the Recent Cooling Measures in Force

Read more on Property Prices to remain stable

Teo added that developers will be keener to maintain prices and allow a lower sell-down rate instead of turning to discounts, which may undervalue the entire project and frustrate earlier buyers who parted with higher prices.

A couple of developers may be impelled to turn to heavy discounting to move all remaining units within half a decade of securing the land, with an aim of reclaiming the remissible fractions of developer’s Additional Buyer’s Stamp Duty (ABSD). The ABSD is currently 25 percent, a raise from the former 15 percent. But Teo says that the number of properties that will attain the half a decade limit from now up to 2020 is fairly low, with under 200 units overall.

Rather than the heavy provision of discounts, Teo expects property owners to give their properties a competitive edge, particularly in the light of the huge supply of properties in the offing.

More upcoming property launches can be found at Parc Clematis (former Park West), One Normanton Park (former Normanton Park) or the View at Kismis (former Kismis View). Click on the link to find out.

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