ABSD to have ripple effect on housing prices

Posted on 9 Jul 2012 | Comments Off on ABSD to have ripple effect on housing prices

The additional buyer’s stamp duty (ABSD) imposed on foreigners purchasing private homes in Singapore has had a ‘ripple effect’ on prices and will eventually cool the market, said a property expert.

Dr. Liao Wen-Chi of the National University of Singapore’s Department of Real Estate said that while foreigners commonly acquire properties in the central region, a decline in purchases due to the ABSD is expected to bring prices down in suburban areas as well.

Analysis done on the property market from 2004 to 2007 showed a ripple effect whereby rising home prices in the central region caused similar upticks in other districts.

Dr. Liao noted that the opposite could be a possibility as well.

Research suggests that “with careful policy properly affecting the inflow of foreign liquidity to Singapore’s real estate market, the government is able to keep a healthy growth of the market and ensure affordable housing”, he said during a real estate conference held at Marina Bay Sands, organised by the American Real Estate and Urban Economics Association and Asian Real Estate Society.

Meanwhile, Minister of State for National Development and Trade and Industry, Lee Yi Shyan, said that the government has sought to create a “sustainable, stable and transparent real estate market”.

He added that aside from taking a multi-stakeholder approach, the participation of academia, researchers and real estate professionals will help in the creation and implementation of better policies.

Source : PropertyGuru – 2012 Jul 9

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Posted in Cooling Measures, Property Market / Real Estate

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More expats looking at Balestier for affordable homes

Posted on 9 Jul 2012 | Comments Off on More expats looking at Balestier for affordable homes

Homes in Balestier are becoming a preferred choice for buyers, especially among expatriates who cannot afford to buy expensive city centre properties.

While units in Balestier are usually 20 percent more affordable than nearby prime areas, they are still fairly central. In the past year, new condos such as Nova 88 have been built in the area supplying over 400 new homes.

Chia Siew Chuin, Director of Research and Advisory at Colliers International, revealed that another 1,400 new homes are expected to be ready in the vicinity by 2015.

As a sign of healthy property sales, Far East Organization’s Vista Residences at Jalan Datoh has eight units remaining – four-bedroom penthouses are going at S$4.3 million or S$1,800 psf.

Launched last year, EL Development’s Skysuites 17 has only one penthouse left.

Chia added that rents in Balestier have also inched up this year. On average, monthly rents stood at S$3.35 psf in April and May, higher than December’s S$2.98 psf.

As for freehold condos, resale prices are 15 to 20 percent lower than in Novena and seven to 10 percent less than in Toa Payoh, noted Ong Kah Seng, Director at R’ST Research.

Meanwhile, more investors and expats are looking at shoebox units, especially small to mid-sized condos such as Okio.

Over at Skysuites 17, investors accounted for about half of the buyers and around 40 percent of the units are sized below 500 sq ft, noted Lim Yew Soon, Managing Director at EL Development.

Experts attribute Balestier’s appeal to its good food, old world charm and attractions.

Source : PropertyGuru – 2012 Jul

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Posted in Property Market / Real Estate, Rental / Lease

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