Mixed Approach In Property Market
As September dawns, the property cooling measures are issued, the Ghost Month ends, people fear there are many things affecting the property market. Although people now are mostly unaffected by the cultural taboos more so because of practical reasons than any other as any business transaction regarding buying or selling of a housing unit takes around 3 months to be properly closed.
However other than the cultural issues, there are other issues to be dealt with regarding buying and selling of homes. One of these issues is the Sellers Stamp Duty (SSD) ensued by the government, which ensures that if any person has purchased or even acquired a property on or after 20 Feb 2010 and sells it within a year of his purchasing or acquiring date will have to pay the duty.
The government further revised the SSD in September when they changed the period from 1 year to 3 years with gradually decreasing the percentage of duty year after year.
Later other property cooling measures were taken in hand to sustain the economy which included the increase in cash down payment in any transaction involving buying a housing unit. Also, buyers will be able to take on loan worth 70% of the total value as opposed to 80% which was earlier.
All of these measures were taken by the government to create a sustainable property market as they had seen the prices surge in this backdrop of global economic crunch. This led to people stretching beyond their means to fabricate their dreams. However the property cooling act made the eager home-buyers to wait out and weigh options and see where the market was headed.
These also made the potential buyers wise out and wait until the sellers lower their asking price. However, this is true that some developers shine out in starting the trend for muted sales. One such condominium project is NV Residences put forth by City Developments and the Hong Leong Group. The NV Residences were show cased in a show flat that was surprisingly swarming with potential buyer traffic as reported by a property analyst. And it saw a remarkable sale of 250 out of the 300 units that were first put on launch.
NV Residences, although had the lion’s share in sales was not the only one. Other projects also saw sales but less in number. They included The Minton, Oasis@ Elias and others.
Whereas this is true, there are other developers who want to wait out this phase and see what happens. Some potential sellers in the secondary market don’t want to make a hasty decision and reports have said that they have even pulled out. Their belief is that they don’t want to subject their properties to opportunist buyers who are only going to take advantage of the price.
So it is a mixed affair in the property market but more or less the opportunist buyers are put on hold for a little while and mostly those people are seen who are first time home buyers or people whose other mortgages are paid off and are looking for a good investment. New housing projects especially condominium housing projects have come out and have actually landed with a good sale.
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