The sales of recently launched Waterline – by Sim Lian Group in Tampines Ave 1, and Lakefront Residences located near Lakeside MRT (Lakeside Drive), has been good (if not excellent). Both sales were quite well done before its official launch day.
The sales figures surprised observers as well as some market analysts, that feel the markets will be slowing down soon for the year-end holidays.
With such heated action, market watchers as well as various real estate professionals believe that the government may step in further to cool the heated property market if the previous regulations did not seem to stem interest by property investors.
Some real estate professionals feel that additional regulations may just kill off interest by investors all together, which may be detrimental to the health of the Singapore economy. It will also hurt genuine buyers and upgraders who wish to upgrade from a smaller unit to a larger unit due to increase in family size, but also wish to keep the smaller unit for investment purposes.
Some market watchers have even gone to the extent of claiming that much of these regulations are to stem foreign “HOT MONEY” from speculating and investing in the property market causing unrealistic price inflation. Although this is a plausible explanation, we should continue to welcome foreign investors that are looking at investing in Singapore in the medium to long term.
In a bid to settle some of these disgruntled Singaporeans, without frightening away prospective foreign investors, some changes have been put in place by our govt.
In Singapore, only citizens and permanent residents (PRs) who make ’significant economic contribution’ can own landed property. These PRs can buy only one such property, must live in it and cannot sell it for three years.
As for foreign developers, they can buy land to build homes, but the project must be completed in five years and all units sold within two years of it receiving the temporary occupancy permit. This is to prevent hoarding.
When the deadlines are not met, they will forfeit their banker’s guarantee, pegged at 10 per cent of the land price. But with the new law, an extension charge will also be levied for the extended time taken beyond the project completion period.