Below are press reports and also our comments in The Edge on recent measures introduced by the authorities to the residential property market.
In my opinion, the latest round of cooling measures will probably affect the investor market. New buyers from 14th January 2011 will have to hold at least beyond 4 years of their purchase to avoid paying stamp duty on resale. I am not overly concerned with the loan to value ratio especially with purchasers of high end properties. However, those buying under company names will only get 50% funding.
The only thing that might be of concern is that the high end rental market could face some pressure as more owners will decide to rent out their properties rather than sell. The only consolation is that every high end development has its own product differentiation. For instance location, development concept (low rise / high rise, resort style or contemporary) etc.
The market is still digesting the overall impact of the news and with Chinese New Year coming on these matters will be shelved till after the festivities.
“Despite robust sale activity in recent property launches, prices of prime freehold apartments remain stagnant. Also the second half of 2010 saw quite a few TOP developments within the traditional prime districts. So there are choices for buyers on the prowl!
With more liquidity coming into the region, the first half of 2010 could see some forward movement for this laggard segment of the market. There will be discretionary buying, and product differentiation will be an utmost consideration in the minds of purchasers.”