The new round of property cooling measures rolled out on July 6, and the residential real estate sector is already feeling the impact.
Lull in buyers’ response following property curbs significant
Just a day before the property curbs kicked in, show flats were filled to the brim with buyers eager to close deals before the tax hikes. But these same show flats after the stamp duty increments were implemented told a different story.
At least for now, home-seekers are likely to be much more wary about their next purchases. Between the rise in stamp duties and the reduce amounts they can now loan, the cash difference they now have to pay to make up the full sale price may not be slight.
Developers sold only 654 private homes in June, 41.7% lower than the month before.
In a year-on-year comparison, sales volume this June is 20.2% lower than June 2017. Including executive condominiums (ECs), the total sales volume came up to 706 units, down 43.9% from May and 33.6% from last June.
There were fewer launches last month as compared to the months before, but 4 times more units were launched this June than last. And herein is the concern as sales volume last month was still lower than last year’s despite the higher number of units launched.
Developers may reschedule future launch dates
Affinity at Serangoon and The Garden Residences were both launched last month. Their proximity to each other and the high selling prices for units at both condominiums may have contributed to the reduced sales.
The median price at Affinity at Serangoon was $1,584 psf while that of units at The Garden Residences, $1,662 psf. 107 units were sold at the former while 64 units were sold at the latter.
Developers may be rescheduling their upcoming launches as they allow the new measures to sink in with buyers who may need to re-do their sums. Buyers may also be doing more research into which developers are offering incentives.