Government raise ABSD and tighten LTV with immediate effect

[JuniorLion]

No. I am just a small investor. I am more concerned on the overall health of the property market. A market without investors is not a healthy one. If the govt comes right out and state they no longer welcome retail investors then so be it.

You probably missed out on all the nuances or failed to infer from their multiple public messages (from MND, MAS) and the multiple rounds of cooling measures that they feel the property sector is overheated.

The upside of property investment is limited. Population growth is slowing, employment passes are reducing, immigration is slowing. The signs are there. Pretty obvious. Without fundamentals, the property prices are but based on sentiments. If you can't read this, you probably shouldn't dabble in property.

Go stocks. At least you don't have to go all-balls in into a single stock

 

[akwl88]

property bull over liao?

 

[peipei1]

You probably missed out on all the nuances or failed to infer from their multiple public messages (from MND, MAS) and the multiple rounds of cooling measures that they feel the property sector is overheated.

The upside of property investment is limited. Population growth is slowing, employment passes are reducing, immigration is slowing. The signs are there. Pretty obvious. Without fundamentals, the property prices are but based on sentiments. If you can't read this, you probably shouldn't dabble in property.

Go stocks. At least you don't have to go all-balls in into a single stock

Singapore is land limited!
Curbing property speculation is needed here, private or public, new government must kill the mindset about housing appreciation. Do you one our child to pay $1m for tiny bto in near future?

Housing is a house to stay, Pap must stop the noise, vote pap!

This round of curb affects those who are financially not here or there, it is no different from buying stocks on leveraging, borrowed margins! We also don't want hot foreign money driving up prices for locals who just want accomodation!!

 

[limster]

Message from government heard loud and clear.
G wants sinkies to stay in HDB and not in private property.

Waiting for private property sales to collapse and the so-called 'elite' civil servants to realise they have over-stretched their regulations and backtrack.

I will laugh my ass off when that happens.

the message i hear is that property is not for speculation/flipping. Its better to deflate the bubble early.

you do know that its Additional buyer stamp duty that applies to the 2nd property? It doesn't prevent you from upgrading from HDB to private property.

 

[peipei1]

the message i hear is that property is not for speculation/flipping. Its better to deflate the bubble early.

you do know that its Additional buyer stamp duty that applies to the 2nd property? It doesn't prevent you from upgrading from HDB to private property.

If the new pap can deliver on this message through, i will vote them love!
Property speculation and driving up prices will have an adverse effect for the inhabitants here! Best to tax heavily those Chinese investors, who oreadi wreck havoc in HK! Keep your dirty rmb away from our roof top!

 

[catlover24]

Ok... it's out of nowhere, but what's the big deal? We know the Singaporean government stance on property for very long, if we want to buy property we can roll with the punches and adjust our expectations of property. This article puts it across well: looking at alternatives is not to bad, don't be fixated on the same project you had in mind. Rental yield doesn't work like that.

 

[antonpoh]

the message i hear is that property is not for speculation/flipping. Its better to deflate the bubble early.

you do know that its Additional buyer stamp duty that applies to the 2nd property? It doesn't prevent you from upgrading from HDB to private property.

What government don't understand about their cooling measures.. is they're making it worst.

Let us look at sg property in a different perspective.

Let say there are only 10,000 condo units in sg and 2,000 units are hold by 2nd property buyer. Because of the Seller Stamp Duty, they won't sell for 3yrs. Because of the ABSD they won't be selling at all because they can't buy another unit back without paying for this new ABSD.

So end up property market only have 8,000 unit selling. When there are less property selling, price goes up.

 

[limster]

So end up property market only have 8,000 unit selling. When there are less property selling, price goes up.

All this reminds me of cnbc. Whenever govt introduces a policy/tax/tariff, they will interview one person who says it will cause prices to go up, and they will interview another that says prices will go down.

 

[annetyu]

What government don't understand about their cooling measures.. is they're making it worst.

Let us look at sg property in a different perspective.

Let say there are only 10,000 condo units in sg and 2,000 units are hold by 2nd property buyer. Because of the Seller Stamp Duty, they won't sell for 3yrs. Because of the ABSD they won't be selling at all because they can't buy another unit back without paying for this new ABSD.

So end up property market only have 8,000 unit selling. When there are less property selling, price goes up.

What I don’t understand is why so many of you don’t have brains. From what you say if the investor sell, they will buy another. So net is zero, isn’t it? And now it’s even more ex to buy 3rd 4th and beyond... so supply will go up. My god

 

[antonpoh]

What I don’t understand is why so many of you don’t have brains. From what you say if the investor sell, they will buy another. So net is zero, isn’t it? And now it’s even more ex to buy 3rd 4th and beyond... so supply will go up. My god

Problem is they can't sell now.

 

[Toni90]

What government don't understand about their cooling measures.. is they're making it worst.

Let us look at sg property in a different perspective.

Let say there are only 10,000 condo units in sg and 2,000 units are hold by 2nd property buyer. Because of the Seller Stamp Duty, they won't sell for 3yrs. Because of the ABSD they won't be selling at all because they can't buy another unit back without paying for this new ABSD.

So end up property market only have 8,000 unit selling. When there are less property selling, price goes up.

Before ABSD, there are 8000 people want to buy 2nd unit, after absd, there is none.

 

[annetyu]

Problem is they can't sell now.

New rules is absd not ssd right?

 

[antonpoh]

New rules is absd not ssd right?

Yes, ABSD.. but if they sell their 2nd property now they can't buy another unit anymore. They will need to pay 12% ABSD + 4% SD.. so most of them won't sell.

 

[catlover24]

New rules is absd not ssd right?

Fewer buyers in the market, less demand, sellers drop price.

 

[Mr.Canberra]

Have you tried to get a bank loan recently?
Do you believe you can get approval of even
$1million easily ?

Super low income earner of S$400/month like me how to qualify for mortgage loan?

If you have any lobang please PM me the mortgage loan department manager's no. I am willing to even pay 20% ABSD!

 

[Mr.Canberra]

the message i hear is that property is not for speculation/flipping. Its better to deflate the bubble early.

you do know that its Additional buyer stamp duty that applies to the 2nd property? It doesn't prevent you from upgrading from HDB to private property.

Yalor those people making noise are those who want to collect multiple properties like stamp collecting. They sure not happy as need to fork out more money.

Same thing for poor uncles like me if my favourite chicken rice up price I also will make noise!

 

[final1]

the message i hear is that property is not for speculation/flipping. Its better to deflate the bubble early.

you do know that its Additional buyer stamp duty that applies to the 2nd property? It doesn't prevent you from upgrading from HDB to private property.

You did not read or did not understand what ALL the changes were.

 

[annetyu]

Yes, ABSD.. but if they sell their 2nd property now they can't buy another unit anymore. They will need to pay 12% ABSD + 4% SD.. so most of them won't sell.

SO I’m saying for this group of people, without the new absd, if they sell, they will get another one, so there is no difference in the number of units in the market. I don’t understand why prices will go up because of this. Instead, for these investors, they can’t buy more, developer will have a harder time clearing stock.

 

[Incognito1979]

When you are the government you must think macro. Which government in this world would not like more taxes from property stamp duties?

The concern is property speculation will cause systematic risks to the banking system. Property purchase is highly leveraged. It is the same if you tio margin call when valuation drop below entry price when punting futures, forex or stocks on leverage. Government does not want to see a mortgage loan default crisis.

The property market is not near any speculative bubble nor is the banking system close to any systemic risks from property in my opinion. Historically margin calls from property is very low, I can only name a few banks that have ever done that. Not that it wouldn't happen but you're alot more likely to get margin calls from shares and FX and lose your pants in that.

If you look at the local banks capital ratios are all extremely high. Banks are flush with cash and so are many people from having saved over the last 3-4 years while the property market was correcting. If you observe the people who are coming out to buy, they're financially strong. They are able to meet tdsr, they are able to come up with the down payment plus previous bsd and absd if necessary. The banks do enforce the tdsr rules very strictly.

The markets need a little bit of animal spirits to give it life. If you over regulate then the economy will be stuck in the doldrums.

I don't oppose regulation, but it should be measured.

 

[OngHuatHuat]

They announce it when the flow of capital out from stock market is the strongest.... haha.... I personally think it is timed.

The property market is not near any speculative bubble nor is the banking system close to any systemic risks from property in my opinion. Historically margin calls from property is very low, I can only name a few banks that have ever done that. Not that it wouldn't happen but you're alot more likely to get margin calls from shares and FX and lose your pants in that.

If you look at the local banks capital ratios are all extremely high. Banks are flush with cash and so are many people from having saved over the last 3-4 years while the property market was correcting. If you observe the people who are coming out to buy, they're financially strong. They are able to meet tdsr, they are able to come up with the down payment plus previous bsd and absd if necessary. The banks do enforce the tdsr rules very strictly.

The markets need a little bit of animal spirits to give it life. If you over regulate then the economy will be stuck in the doldrums.

I don't oppose regulation, but it should be measured.