Jan 30, 2013
Property stocks plunged right after the announcement of the Government’s most comprehensive property cooling measures thus far, as experts estimated a brutal drop in demand for private residential units.
However, 2 weeks after the announcement, sales are still going strong after more, and the overview of the market has become an optimistic one.
A prime example of this is Q Bay Residences in Tampines. Being the first condo launched fter the onset of the cooling measures, this project saw 312 out of its 510 units snapped up, showing a healthier demand than previously predicted.
Potential buyers feel that the need for a home precedes the limitations of the cooling measures, and that this may even be an opportune time to buy a house as prices may drop due to he new rules.
Developers who were apprehensive about the drop in demand have responded by cutting their prices to offset the increase in Additional Buyer’s Stamp Duty (ABSD). Q Bay Residences was originally going for a price of $1050 per square foot per plot ratio (psf ppr), but it was launched at an average selling price of only $985 psf ppr.
However, some industry insiders believe that the apprehension is uncalled for. Observers feel that the low interest rates and growing population will continue to drive up property sales. Besides, property prices can only rise, and not fall in the long run regardless of the measures implemented. Thus, now is as good a time as any to buy a property.
Nevertheless, some developers are still playing the waiting game, as it may still be too soon to determine exactly how the property market will change. The full picture may only be revealed after the first quarter of the year.
Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
DTZ Property Network Pte Ltd (L3007960A)