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Despite the introduction by the government of new cooling measures, developers do not intend to massively reduce house prices.
Richard Lai, CFO of the GuocoLand Group, revealed that the company had no intention of reducing real estate prices. "More flexible" in the sale of homes less attractive to buyers, reports Today Online.
He notes that with mass properties, developers will not be affected as much by the Additional Buyer Duty (ABSD) For high-end properties, developers will not be affected by this. expect buyers and investors, most of whom are foreigners, to adopt a wait-and-see attitude
"High-end products have a different target market and, therefore, will have very different reactions to mass, "explained Lai at the World Economic and Trade Forum of the OCBC Treasury that was held at the Ritz-Carlton ho.Taken by surprise, the government raised ABSD rates on purchases from residential properties July 5.
Analysts expect developers to be hit hard by the new measures because of increased land acquisition costs. has maintained a positive outlook on l & # 3 9, effect of the new limitation on profit margins and prices. figures from) a year ago, I would say that our margins have improved a lot, so if I have to absorb five percent (on duty), it's not going to hurt us very much. This means that we are going to make less money, but that does not mean that we will eventually lose money. "
However, he added that" if we were going to do that is another matter completely. "
" Are we going to be a little more lenient in pricing given the new measures? Yes, we must be more flexible. But are we going to make massive cuts? For the less advantageous units, we will have to be more flexible. "
Christopher Chitty, Senior Content Producer, edited this story
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