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Sales momentum to turn cold; en-bloc activity to wane as developers rethink strategies

PC Lee
PC Lee7/6/2018 01:34 PM GMT+08  • 2 min read
Sales momentum to turn cold; en-bloc activity to wane as developers rethink strategies
SINGAPORE (July 6): After warning of “market exuberance” in the property market for the past six months, the Singapore government has finally raised Additional Buyer’s Stamp Duty (ABSD) rates by 5 ppts and tightened Loan-to-Value (LTV) limits by 5 p
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SINGAPORE (July 6): After warning of “market exuberance” in the property market for the past six months, the Singapore government has finally raised Additional Buyer’s Stamp Duty (ABSD) rates by 5 ppts and tightened Loan-to-Value (LTV) limits by 5 ppts.

In terms of demand, sales momentum is expected to turn cold. According to a Friday report by DBS Group Research, the combined impact of these measures raises the cost of ownership on an assumed $1.5 million property purchase by $75,000 for first-time buyer and $150,000 for investor.

With the increased upfront capital commitment, DBS expects demand from investors and foreigners to cool in the immediate term. In terms of sales momentum, total volumes is expected to fall to 9,000-10,000 units in 2018, and potentially even further if these curbs remain.

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