Measures To Cool The "Euphoria" in Singapore Property Market & Projects By Key Developers

Property Stocks Cooling Measures


Measures To Cool The "Euphoria" in Singapore Property Market


  • The Government announced adjustments to the Additional Buyer’s Stamp Duty (ABSD) rates and Loan-to-Value (LTV) limits on residential property purchases, to cool the property market and keep price increases in line with economic fundamentals.
  • The new rates are effective 06-Jul-2018, but there will be a transitional provision for cases where an Option to Purchase (OTP) has been granted by sellers to potential buyers on or before 05-Jul-2018.
  • Check out the list of current projects of key SGX listed developers including CapitaLand, City Developments, UOL Group / UIC, GuocoLand, Bukit Sembawang, Oxley, HongKong Land, Chip Eng Seng, Roxy Pacific, Far East Organisation according to Maybank Kim Eng analyst's compilation published on 18-June-2018.





Adjustments to Additional Buyer’s Stamp Duty (ABSD) Rates for Residential Property



Rates on or before 5 July 2018 Rates on or after 6 July 2018
SCs buying first residential property 0% 0%
(No change)
SCs buying second residential property 7% 12%
(Revised)
SCs buying third and subsequent residential property 10% 15%
(Revised)
SPRs buying first residential property 5% 5%
(No change)
SPRs buying second and subsequent residential property 10% 15%
(Revised)
Foreigners buying any residential property 15% 20%
(Revised)
Entities buying any residential property 15% 25%
(Revised)#
Plus additional 5% for developers^
(New, non-remittable)*
# As entities, developers will also be subject to the ABSD rate of 25% for entities. Developers may apply for remission of this 25% ABSD, subject to conditions (including completing and selling all units within the prescribed periods of 3 years or 5 years for non-licensed and licensed developers respectively). Details are provided under the Stamp Duties (Non-licensed Housing Developers) (Remission of ABSD) Rules and the Stamp Duties (Housing Developers) (Remission of ABSD) Rules.

^ Developers refer to entities which engage in the business of construction and sale of housing units.

* This new 5% ABSD for developers is in addition to the 25% ABSD for all entities. This 5% ABSD will not be remitted, and is to be paid upfront upon purchase of residential property.


Source: http://www.mas.gov.sg/News-and-Publications/Media-Releases/2018/Raising-Additional-Buyers-Stamp-Duty-Rates-and-Tightening-Loan-to-Value-Limits.aspx





Revised Loan-to-Value (LTV) Limits on Housing Loans Granted by Financial Institutions



1st Housing Loan 2nd Housing Loan   From 3rd Housing Loan
Individual Borrowers  
LTV Limit Existing Rules
80%; or 60% if the loan tenure is more than 30 years* or extends past age 65
Revised Rules
75%; or 55% if the loan tenure is more than 30 years* or extends past age 65
Existing Rules
50%; or 30% if the loan tenure is more than 30 years* or extends past age 65
Revised Rules
45%; or 25% if the loan tenure is more than 30 years* or extends past age 65
Existing Rules
40%; or 20% if the loan tenure is more than 30 years* or extends past age 65
Revised Rules
35%; or 15% if the loan tenure is more than 30 years* or extends past age 65
Minimum Cash Down Payment  No change to existing rules
5%; or 10% if the loan tenure is more than 30 years* or extends past age 65  25%
Non-Individual Borrowers
LTV Limit Existing Rule
20%
Revised Rule
15%
* 25 years, where the property purchased is a HDB flat.



Source: http://www.mas.gov.sg/News-and-Publications/Media-Releases/2018/Raising-Additional-Buyers-Stamp-Duty-Rates-and-Tightening-Loan-to-Value-Limits.aspx





Projects By Key Property Developers



(Extracted from Maybank Kim Eng Report - Singapore Property: Buying Opportunity published on 18-June-2018.)

Data as of May-18 Units sold (no.) Median price (SGD psf)
Segment Total units Unsold units % unsold Total sold Feb-18 Mar-18 Apr-18 May-18 Feb-18 Mar-18 Apr-18 May-18
CapitaLand 109 0 0 109 2 1 0 0
Victoria Park Villas CCR 109 0 0 109 2 1 0 0 2,258 1,691 -
City Developments 5,084 1,236 24 3,848 21 344 59 65
South Beach Residences CCR 190 190 100 0 0 0 0 0 - - -
Commonwealth Towers RCR 845 0 0 845 0 0 - -
Coco Palm OCR 944 8 1 936 0 1 3 2 - 1,314 1,341
The Brownstone (EC) OCR 638 0 0 638 0 2 0 0 - 904 -
The Criterion (EC) OCR 505 1 0 504 16 9 0 1 785 786 -
Forest Woods OCR 519 24 5 495 5 3 5 3 1,489 1,536 1,525
The Tapestry OCR 861 431 50 430 0 329 51 59 - 1,408 1,391
The Jovell OCR 428 428 100 0 0 0 -
Boulevard 88 CCR 154 154 100 0 0
UOL/UIC 1,817 133 7 1,684 11 12 32 103
V on Shenton CCR 510 70 14 440 2 3 1 1 2,558 2,440 3,225
Principal Garden RCR 663 0 0 663 0 0 0 0 - - -
The Clement Canopy OCR 505 10 2 495 9 9 31 16 1,479 1,464 1,460
Amber 45 RCR 139 53 38 86 0 0 0 86 - - -
GuocoLand 1,655 359 22 1,296 28 35 9 9
Sims Urban Oasis RCR 1,024 21 2 1,003 12 11 3 2 1,536 1,406 1,490
Wallich Residence CCR 181 141 78 40 1 4 4 6 3,894 3,465 3,163
Martin Modern CCR 450 197 44 253 15 20 2 1 2,603 2,772 2,957
Bukit Sembawang 545 465 85 80 8 12 12 8
Luxus Hills OCR 117 117 100 0 0 0 0 0 - - -
Watercove OCR 80 27 34 53 5 1 2 5 683 663 746
8 Saint Thomas CCR 250 250 100 0 0 0 0 0 - - -
NIM Collection OCR 98 71 72 27 3 11 10 3 1,661 1,610 1,407
Oxley 1,444 1,102 76 283 0 0 141 88
The Rise @ Oxley CCR 120 0 0 120 0 0 - -
The Verandah Residences RCR 170 7 4 163 0 141 29 - 1,846
Parkwood Residences OCR 18 18 100 0 0 0 0 - -
Sea Pavilion Residences OCR 24 10 42 14 0 14 -
Sixteen35 Residences RCR 60 15 25 45 0 45 -
Affinity At Serangoon OCR 1,052 1,052 100 0 0
Keppel Land 1,839 613 33 1,226 10 1 0 0
Highline Residences RCR 500 0 0 500 10 1 0 0 2,063 1,897 -
The Glades OCR 726 0 0 726 0 -
The Garden Residences OCR 613 613 100 0 0 0 -
HK Land 2,346 309 13 2,037 5 2 3 1
Lake Grande OCR 710 0 0 710 2 1 0 0 1,430 1,280 -
Sol Acres (EC) OCR 1,327 0 0 1,327 3 1 3 1 781 785 812
Margaret Ville RCR 309 309 100 0 0 0 0 0 - - -
Chip Eng Seng 1,525 833 55 692 26 40 15 11
Grandeur Park Residences OCR 720 28 4 692 26 40 15 11 1,487 1,532 1,502
Park Colonial RCR 805 805 100 0 0
Roxy Pacific 383 71 19 312 7 7 55 10
The Navian OCR 48 10 21 38 6 7 3 4 1,596 1,627 1,610
Trilive OCR 222 0 0 222 1 0 0 0 1,445 - -
Harbour View Gardens RCR 57 5 9 52 52 6 - 1,763
120 Grange CCR 56 56 100 0 0
Far East Organization 483 379 78 104 5 4 11 11
Parksuites CCR 119 106 89 13 3 3 3 4 2,215 2,160 2,041
Greenwood Mews CCR 62 58 94 4 0 0 0 0 - - -
Ferra CCR 104 99 95 5 0 0 0 0 - - -
Bijou RCR 120 60 50 60 2 1 8 6 1,960 1,971 1,896
Alana OCR 78 56 72 22 0 0 0 1 - - -
M+S 1,702 573 34 1,129 8 11 27 23
Duo Residences CCR 660 8 1 652 3 3 1 4 2,143 2,200 2,170
Marina One CCR 1,042 565 54 477 5 8 26 19 2,324 2,420 2,479
Total (including ECs) 10,772 469 788 1,325 1,257
Executive Condominium 75 92 72 596 136
Total (excluding ECs) 10,697 377 716 729 1,121
High end CCR 2,276 45 69 50 43
Mid-range RCR 3,068 170 110 459 286
Mass market OCR 5,353 162 537 220 792





Also Read:

Singapore Property - Maybank Kim Eng 2018-06-18: Buying Opportunity


More Reports:

Analysts Say > Property / Real Estate Sector Report








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