Not unlike some years back when the previous rounds of property cooling measures were implemented, developers are once again offering buyers discounts and rebates in light of last week’s new property cooling curbs.
Developers offer discounts and rebates as a relief to cooling measures
Buying sentiment in the property market has just picked up a year or so ago and with the government implementing a round of cooling measures last week, developers are worried that this positivity might be affected. The most recent round of property market curbs includes higher Additional Buyer’s Stamp Duty (ABSD) and tighter Loan-to-value (LTV) limits.
And to help buyers soften the sting of the stamp duty hikes, developers are offering direct discounts and rebates. Some are even raising commissions to agents to help bring in buyers and new launches. Yet others have even included marketing agents’ names in their advertisements.
Considerable discounts offered and buyers may take the bait
Oxley Holdings, for example, offered a 5% to 7% stamp duty discount last weekend at the Affinity at Serangoon condominium project. The discounted pricing can be rather attractive with a one-bedder costing $676,000, or $36,000 lesser than the $712,000 price from June 30.
As with the implementation of any new regulation, the market will take some time to absorb and react to the change. Will some developers choose to delay the launches originally planned for the next few months, opting instead to monitor the market and re-strategize?
At Logan Property and Nanshan Group’s Stirling Residences, the developers have already adjusted their pricing following the initial release of 380 units at the 1,259-unit project. They have however maintained the pricing at $1,800 psf. The one- and two-bedders were the most popular with buyers.