Developers rap private property cooling measures

Analysts said "megasites" such as Braddell View (above), Mandarin Gardens and Laguna Park face an even greater challenge in luring developers, what with the higher land acquisition costs.
Analysts said "megasites" such as Braddell View (above), Mandarin Gardens and Laguna Park face an even greater challenge in luring developers, what with the higher land acquisition costs. ST PHOTO: YEN MENG JIIN

Developers have criticised the Government's latest moves to cool the private property market, while many analysts foresee the spate of sites going en bloc being reined in.

In a statement yesterday, the Real Estate Developers' Association of Singapore (Redas) said there was "no rationale" behind imposing a higher Additional Buyer's Stamp Duty (ABSD) and limiting borrowing to finance new properties.

Developers also face a new ABSD of 5 per cent that cannot be waived, meaning the cost of acquiring land is higher and which Redas said was prohibitive in doing business.

The organisation said market recovery was still in the early stages, unlike the Government's charge that prices could be "running ahead of economic fundamentals".

The new measures are likely to slow down, if not halt, the collective sales of private homes.

Analysts said "megasites" such as Braddell View, Mandarin Gardens and Laguna Park face an even greater challenge in luring developers, what with the higher land acquisition costs. Home owners may now have to accept a lower premium if they wish to take advantage of collective sales, they said.

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A version of this article appeared in the print edition of The Straits Times on July 07, 2018, with the headline 'Developers rap private property cooling measures'. Print Edition | Subscribe