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SINGAPORE – The Real Estate Developers' Singapore Association (Redas) said there was "no justification" for the new private property cooling measures imposed on Friday.
In a statement Friday night (July 6), Redas labeled the moves to increase the stamp duty of additional buyers (ABSD) and tighten the lending limits for individuals by 5 percentage points each "difficult". This is all the more so as "the real estate market is in the early stages of recovery and the recovery is in line with economic fundamentals," says the release
. In explaining the moves Thursday night, National Development Minister Lawrence Wong said the government was "very concerned that prices are exceeding economic fundamentals."
In his statement, Redas said the market outlook was bleak since 2013 began to recover in 2017, after more favorable forecasts for Singapore's economy, which rose 3.5% in the end of 2017 and 4.4% in the first quarter of 2018.
The organization also noted that the volume of transactions was not high and according to market expectations, adding that the former ABSD ratios and total debt service in place since 2013 "remain a restrictive factor for foreign buyers and Singaporeans".
"Buyers are always sensitive to price" market "should have the time to find its own way and achieve a sustainable balance."
He added that he did not see the reason for imposing additional harsh measures on developers. By increasing by 10 percentage points the ABSD rate for entities to 25 percent – an amount that can be waived if developers fulfill several conditions, including completing and selling all their units within a prescribed time – the government imposed a Additional ABSD of 5 percent.
Existing measures, such as financial considerations and "hostile trade policies" such as the old ABSD and penalties, were sufficient, according to the report
"The new ABSD on promoters will put pressure additional on the acquisition of land. "It is in the interest of the country to have a vibrant real estate industry and a steady growth in the value of real estate for the owners and investors in the real estate sector, "he added, in the long term," he added, adding that he hoped the government would maintain its confidence in the market when it the examination of these measures.
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