Singapore’s property market faces a lacklustre year ahead as, the various cooling measures, interest rates hike and the many unsold units continue to put a pressure on rentals while developers are faced with hefty extension fines.
According to the fourth quarter data from the Urban Redevelopment Authority (URA), prices of condominiums in the Rest of Central Region (RCR) declined the most at 0.3 per cent followed by those in the city centre (Core Central Region – CCR) at 0.2 per cent.
Meanwhile, the suburban area (Outside Central Region – OCR) remains unaffected.
The government has so far made no indications on whether it will remove the cooling measures which include the Additional Buyer’s Stamp Duty (ABSD), Seller’s Stamp Duty (SSD) and Total Debt Service Ratio (TDSR) and this have had a significant impact among foreign and local investors in the private property market.
As a result, developers may have to pay S$238 million on unsold units this year, up from S$90 million that they had incurred in 2015.
Since 2014, the Real Estate Developers Association (REDAS) had called on the Singapore government to lift the cooling measures which had impacted on the number of unsold units by developers.
For instance, according to the URA, as of the fourth quarter alone, 23, 271 private housing units remained unsold out of the total supply of 55, 638 units.
Including executive condominiums (ECs), the total supply in the pipeline were 67, 765 units.
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