Property sellers in Singapore rushed to close deals before midnight last night before a new round of anti-speculation measures took effect today. Some chose to pull their properties from the market all together, the Today newspaper reported.
Many property firms said that they received a flood of inquiries from buyers and sellers when news of the cooling measures broke on Thursday.
Prospective first-time property buyer Christoper Ng, 36, was rushed into making an offer by his agent last night because the seller apparently wanted to close the deal quickly but was beatern by another bidder. “My other agents actually called me and said that most of the listings have been delisted and so the supply has shrunk,” said Ng.
The measures raise the seller’s stamp duty to a maximum 16 per cent on property re-sold withing the first year of purchase, a big jump from the previous 3 per cent. Banks are also reducing the maximum LTV (loan-to-value) rate to 60 per cent of the property value for those who already have at least one mortgage.
While other property analysts felt it was premature to assess the full impact of the measures, Propnex CEO Mohd Ismail said he expects 20 per cent of buyers who had bought properties recently to rethink their transactions. Buyers who have paid a deposit but do not exercise the option to purchase might forfeit the fees – amounting to 1 per cent of the property’s value – which they have paid.
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