SINGAPORE: Private property prices could go down by five to seven per cent, predicted property analyst Mohamed Ismail of PropNex, as new property cooling measures took effect on Saturday.
The measures, aimed at ensuring a sustainable and stable property market, include tightening property ownership for investment.
At La Fiesta condominium’s sales site in Sengkang on Saturday, there was a steady stream of potential buyers. It was unlike the massive crowds that thronged the site after the announcement of the cooling measures on Friday night.
Saturday’s visitors ranges from those who are not affected by the measures, such as first—time buyers, to serious upgraders willing to fork out more.
"Just bringing my parents here for sightseeing," said Tay Yeng Hwee, a visitor at the sales site. "Definitely won’t have the money to buy with the additional measures."
With the new rules in place, Singaporeans buying their second property will have to pay seven per cent of the additional buyer’s stamp duty.
Some buyers whom Channel NewsAsia spoke to are not deterred by the measures.
"We are keen to have another property because we are staying with our parents so (we are) thinking of getting another space," said Ray Chua, a potential buyer.
Originally slated to be launched next week, the developer had scrambled to get things ready for would—be buyers.
"Buyers are rushing down to get their choice units, which is good because you don’t have to go through luck," said Aprene Loh, marketing associate at PropNex.
Channel NewsAsia understands that about 80 per cent of the launched units were snapped up in about four hours on Friday night.
There are about 800 units at La Fiesta, ranging from one— to five—bedroom units.
Tan Zhiyong, managing director at MCC Land (Singapore) said: "The measures this time round are mainly aimed at investors and foreign buyers, and it may have a bigger impact on the more high—end condominium units, because their buyers are mainly the investors and foreign buyers."
Mr Ismail said sales volume of private property is expected to fall by over 50 per cent, as buyers and investors choose to wait out and see the effects of the cooling measures.
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