Private property prices... Up or Down?

[Piyopico]

All my property agents frens flooding their FB pages with declarations to buy due to Property easing measures in bold........

 

 

[merc280v6]

Wind30

 

You're quite right.

I view this move as a means to improve supply even more - by relaxing rules to encourage more sellers to let go of their 'checkmated' properties, earlier, back into the market.

[Wind30]

Wind30

 

You're quite right.

I view this move as a means to improve supply even more - by relaxing rules to encourage more sellers to let go of their 'checkmated' properties, earlier, back into the market.

 

If you think about it, the SSD affects people who bought properties in the past 4 years..... Most of them are probably looking at a loss.

 

It just helps to reduce the pain for these people and help them sell at a lower price. The SSD was a weird cooling measure anyway so it really make sense to roll that back ASAP. If the market gets worse, it is hard to roll back that measure without putting more downard pressure on prices. 

[RadX]

to me is nil effect.

[Wind30]

Singapore, 10 March 2017… The Government has continued to review conditions in the residential property market. It has determined that the current set of property market measures remain necessary to promote a sustainable residential property market and financial prudence among households.  However, we will make calibrated adjustments to the Seller’s Stamp Duty (SSD) and Total Debt Servicing Ratio (TDSR) framework, with effect from 11 March 2017. 

Additional Buyer’s Stamp Duties (ABSD) and Loan to Value (LTV) Limits

2.     Transaction volumes in the private residential property market remain healthy. There is firm demand for private housing, in part because of current low interest rates and continued income growth. While the growth in outstanding housing loans has moderated, it is prudent for households to further build up their financial buffers to protect against future interest rate increases or any losses in income. The Government is therefore retaining the current ABSD rates and LTV limits.

Seller’s Stamp Duties (SSD)

3.     The SSD is currently payable by those who sell a residential property within 4 years of purchase, at rates of between 4% and 16% of the property’s value¹. The number of property sales within the 4-year window has fallen significantly over the years since this measure was introduced. The Government will therefore revise the SSD as follows:

a) Impose SSD on holding periods of up to 3 years, down from the current 4 years; and

b) Lower the SSD rate by four percentage points for each tier. The new SSD rates will range from 4% (for properties sold in the third year) to 12% (for those sold within the first year).

4.     The new SSD rates will apply to all residential property purchased on and after 11 March 2017. Details of the revised SSD rates are in the Annex.

Total Debt Servicing Ratio (TDSR)

5.     The TDSR framework aims to encourage prudent borrowing by households and strengthen credit underwriting standards by financial institutions. Under this framework, property loans extended by a financial institution should not exceed a TDSR threshold of 60%.
 
6.     However, some borrowers have given feedback that the TDSR framework has limited their flexibility to monetise their properties in their retirement years, i.e. to borrow against the value of their properties to obtain additional cash. MAS will therefore relax the rules to meet such needs. We will no longer apply the TDSR framework to mortgage equity withdrawal loans with LTV ratios of 50% and below.

Stamp Duties on Transfer of Equity Interest in Entities whose Primary Tangible Assets Are Residential Properties in Singapore

7.     The 2nd Minister for Finance will be introducing legislative changes in Parliament today aimed at treating transactions in residential properties on the same basis irrespective of whether the properties are transacted directly or through a transfer of equity interest in an entity holding residential properties. The intent is not to impact the ordinary buying and selling of shares in such entities by retail investors, where the entities are listed on the Singapore Stock Exchange. However, significant owners of residential property-holding entities or PHEs2  will be subject to the usual stamp duties when they transfer equity interest in such entities, similar to what would happen if they were to buy or sell the properties directly.  

8.     The Stamp Duties (Amendment) Bill will be tabled in Parliament today to give effect to this policy intent. Further details of this measure are in the Bill.

****

1 Refers to the property’s selling price or market value. 
2 An entity is defined as a Property Holding Entity (PHE) under two possible circumstances.

a) The first category of entities holds residential properties directly. To establish if such an entity is a PHE, a significant asset test will be applied. An entity can be a PHE if 50% or more of its total tangible assets is residential properties in Singapore. We will call this a Type 1 PHE. 

b) There is also a second category of entities that have indirect holdings of residential property through Type 1 PHEs in which it has at least 50% equity interest. For such an entity, it will be considered as a PHE if it meets two criteria:

i. First, it beneficially owns at least 50% equity interest in a Type 1 PHE, and 

ii. Second, it meets the significant asset test as mentioned above – in other words, the total value of the residential property it owns indirectly through Type 1 PHEs in which it owns at least 50% equity interest as well as the value of the property which it may own directly comprises 50% or more of its total tangible assets.  Its total tangible assets comprise the total tangible assets it owns directly, as well as through entities (whether PHEs or not) in which it owns at least 50% equity interest.  

[Wt_know]

ah gong know the pent up demand Q is from Geylang all the way to Woodland ... some say JB

what's wrong to collect MORE ...

Edited March 10, 2017 by Wt_know

[Showster]

Anyway the new SSD is for new purchases. Only increases confidence of buyers who may want to sell in 3 years time. More welcoming to Traders now. Even if want to twist it as supply, it is still supply 3 years down the road.

 

The main effect is on those sincere buyers hoping to offload from retirees who bought at yesterday's prices. May need to turn to Developers now.

[Piyopico]

Those who bought Yesterday suddenly feel beri angry. Kenna four years and lose extra 4%.

 

Why never wait one more day...... 天啊

 

 

[Throttle2]

Muayhahaha!

 

Go go go buy buy buy...

 

Heeeeeeeee

[Ktglfc]

http://www.straitstimes.com/business...t-tdsr-relaxed

 

Govt eases property cooling measures: sellers' stamp duty holding period now 3 years, rates cut; TDSR relaxed

PUBLISHED9 MIN AGOUPDATED5 MIN AGO

FACEBOOK11TWITTEREMAIL

SINGAPORE - The Government has relaxed some property cooling measures. The new rules take effect from March 11.

 

The sellers' stamp duty (SSD) is currently payable by those who sell a residential property within 4 years of purchase, at rates of between 4 per cent and 16 per cent of the property's value

 

The changes will see SSD holding period cut to three years, down from four.

 

 

The SSD rates will also be lowered by four percentage points for each tier.

 

The new SSD rates will range from 4 per cent (for properties sold in the third year) to 12 per cent (for those sold within the first year).

 

The TDSR framework will no longer apply to mortgage equity withdrawal loans with loan-to-value ratios of 50 per cent and below.

 

 

 

 

Maybe can spur the market a bit ... Huat Ah.

 

Correct me if I am wrong.

The revised SSD applies to properties bought after 11 Mar 2017.

Hence those bought earlier are still subjected to the 4 years ....

if that's the case, will stimulate more buyers to buy for the recent launches at Clementi and Tanah Merah ... though ABSD still applies ...

[Throttle2]

Kneejerk as the "removal" of CMs has no real impact.

 

Those who want to buy will always buy and those who dont wont.

 

Congrats to those who "made" money.

Prosperity and wealth.

 

Cheers.

[Showster]

Those who bought Yesterday suddenly feel beri angry. Kenna four years and lose extra 4%.

 

Why never wait one more day...... 天å

 

ð¬

Traders have been turned away since 2009 or 2010. I hardly know anyone buying who have the intention to sell or flip in 3-4 years. 5 to 10 maybe.

 

For the group that bought, their intention is to hold longer than 4 years I believe. So not much difference.

 

Most important psychological difference is the Govt can change the game at the snap of the finger. Those who want to upgrade or decouple or sell 1 buy 2, or still looking for first purchase whether HDB or private, as long as you can avoid ABSD, you know you gotta hurry.

 

The best time to have acted was Nov 2016. Now is playing catch up time.

Edited March 10, 2017 by Showster

[Wind30]

Anyway the new SSD is for new purchases. Only increases confidence of buyers who may want to sell in 3 years time. More welcoming to Traders now. Even if want to twist it as supply, it is still supply 3 years down the road.

 

The main effect is on those sincere buyers hoping to offload from retirees who bought at yesterday's prices. May need to turn to Developers now.

 

correct. My bad. I thought it applies to all properties. only apply to newly bought property after this.

 

So it is a plus definitely for prices. 

[Mockngbrd]

COE will go down arnot?

[Invigorated]

I think the crux here is, what msg is the govt sending to us on the relaxation of the cooling measure, or a lite heating measure?

 

Has it found that prices have corrected enough? I don't think we have to think too deeply to make a calculated guess.

[Throttle2]

quickly buy!!!!

 

Muayhahahahahahahahahaha

[Lava]

purchase mean from date of "option to purchase" or "exercise"?

[Showster]

quickly buy!!!!

 

Muayhahahahahahahahahaha

Even T2 on buy call...

 

Stocks no enough!