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Slow property market in 2014 and what’s now in 2019 onward?

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Slow Property Market – Scale Back on Land Sales in 2014

The slow property market in 2014  – “Singapore government scales back on land sales in lukewarm (tepid) market…to guard against an oversupply …” reported in ST Main page dated Friday 5th December 2014.

Singapore Property Slow Market

Who was Paying More for Their Properties

Property prices had fallen, but buyers were still paying more. Why? Because most of the buyers had at least one or more properties. They were buying another property that incurred ABSD (Additional Buyer Stamp Duty) that can be costly and increased the total cost of purchase.

So, only those buying their FIRST private property will benefit in this slow market – because they need not pay ABSD. How many were there?

Is Now the Right Time to Remove ABSD in a Slow Property Market?

Perhaps it was the right time to remove ABSD to ensure a healthy real estate market again and not penalizing the local investors. Because with the introduction of TDSR (Total Debt Servicing Ratio), it was effective in promoting and ensuring prudence in property investment in Singapore.

So, only those buying their FIRST property will benefit in this slow market – because they need not pay ABSD. How many were there?

Perhaps it was the right time to remove ABSD to ensure a healthy real estate market again and not penalizing the local investors. Because with the introduction of TDSR (Total Debt Servicing Ratio), it was effective in promoting and ensuring prudence in property investment in Singapore.

But ABSD Only Increased. Why and how?

Now, in the year 2019, we know for sure the ABSD is not removed but instead increased. ABSD is Everywhere! (Singapore 20%, Hong Kong 30%, Toronto 15%, Vancouver 20%, United Kingdom 12% and New South Wales 8%).

Foreigners were still reaching to Singapore to purchase and investment in our properties. They have faith in our economy, infrastructure, policy, regulation and government. Did you know one of the foreigner buyers pay millions of dollars in ABSD to purchase a very luxurious property in Singapore?

So, ABSD is here to stay! But there are many ways to manage ABSD to reduce purchasing costs.

Here are a few examples:

  • Part-share. Selling one of the shares to the other party to free up the name to purchase another property without incurring ABSD.
  • Dispose of ageing properties with excellent control of the timeline to ensure a smooth transaction and achieve maximum results.
  • You are buying a property under your child’s name (through trust and list your child as beneficiary).
  • Above all, you have made it, and you have multiple properties. Buy in the current market cycle (recovery stage) and pay the ABSD. Adopt the buy and wait for the price to go up in this land scare country, rising inflation growing population and promising transformation.

Singapore Property Market Cycles up to 2018 Q3

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