Companies Not Spared (14/01/11)

Companies, trusts, funds or other purchasers that are not individuals also felt the wrath of the new cooling measures implemented by the government yesterday.

Previously, such property owners were afforded the same benefits of individual buyers - they could borrow as much as 80% of the property price if it was a first purchase or as much as 70% if they had an outstanding loan or finance agreement in place.

The new measures sees this wiped away with such purchasers having to put down a massive 50% of the property price, regardless of whether it is a first time purchase or not for the non-individual buyer.

Some may argue that this measure is a good way of preventing people from taking advantage of a loop-hole in the previously modified measures. Others may argue that it will stop investment in properties for some time as the non-individual buyers would be unlikely to risk half of the property price in property, especially at a time when the next few years seem a little uncertain in terms of growth or return in the property sector.

 Sellers Stamp Spikes (14/01/11)

Speculators who get into the property market to make a quick buck are sure to feel the pinch after the government unveiled its latest news and measures to curb the property market.

Seller's stamp duty was significantly raised in an attempt to discourage rapid buying and selling of properties for profit, commonly known as 'flipping'.

Up to a whopping 16% of the property price may need to be paid by the seller of the property if they decide to sell within a year, up 13% from last year's paltry 3%. Should the property exchange hands within 2 years a 12% stamp duty will be incurred, an increase of 10%. For a sale to occur within a 3 year period an 8% stamp duty fee will apply, up 7% from last year's 1%. If the property is sold within a four year period a 4% stamp duty, more than any other level previously will be imposed, up from the 0% that used to apply.

Flippers and speculators may be more cautious when they are buying, but will the new measures have the desired effect the government have been searching for since property prices hit an all time spike? That remains to be seen.

 Speculators Stumped! (14/01/11)

Second time property buyers were given a rude awakening by the government's latest round of cooling measures yesterday.

Prior to the new measures, second time buyers who had an outstanding mortgage or loan had to put down 30% of the cost of the property. This has now been revised to a whopping 40% in an attempt to curb the speculation which continues to be evident in the property sector.

Analysts thought the first round of measures, brought in last year, would see sales soften as buyers would need 30% for second properties, with outstanding loans. This wasn't the case. New launches continued to attract investors, cashing in on the transient expatriate population, some who rent properties at premium prices due to very generous housing allowances.

Whether the new measures will affect the sales of apartments in the coming months and year, only time will tell.

 More Cooling Measures Introduced (14/01/11)

In an attempt to dampen the speculation in the Singapore property market, the government acted yesterday to implement new measures effective immediate.

The main aim is to put a stop to the rising prices and to try to clip the wings of speculators buying second properties or trying to buy and sell properties in a short space of time.

Second property buyers will now have to put down 40% of the price of the property, up from the previously revised 30% the last time measures were introduced last year.

Buying property through a company or trust just became more difficult too with a whopping 50% required of the asking price, regardless of whether it is the first property bought in such a manner.

Whether these new measures will have the desired effects the government were looking for in previous attempts to curb the property market spiralling out of control, remains to be seen.

 KNG win tender (07/12/10)

The Urban Redevelopment Authority (URA) has awarded the tender for the industrial site at Pioneer Road North / Soon Lee Street to KNG Land Pte. Ltd.

The company submitted the highest bid in the tender for the site, just shy of $27 million.

The tender for the industrial site was launched on 3 November 2010 and closed on 1 December 2010. The land parcel was offered for sale on a 30-year lease.