SINGAPORE: New cooling measures announced by the government on Thursday evening (Jul 5) sparked a last minute buying frenzy, as buyers rushed to avoid the measures which take effect today (Jul 6).
Developers were caught off guard by the announcement and hastily put up units for sale ahead of their planned launches.
Home buyers rushed down to show suites at Park Colonial and Riverfront Residences, which were supposed to launch this weekend.
The scenario was similar at the sales offices of Stirling Residences, originally slated to launch on July 14.
The situation was described as “chaotic” at the show suites.
Despite the frenzy, more than 1,000 units were reportedly sold at the three new launches during the late evening.
|Project||Developer||Total Units||Units Sold||Percentage Sold|
|Riverfront Residences||Oxley Holdings||1,572||500||31.8%|
(Note: Figures are indicative only)
The Government announced that it would raise Additional Buyer Stamp Duty (ABSD) rates and tighten Loan-to-Value (LTV) limits on residential property purchase to “cool the property market and keep price increases in line with economic fundamentals”.
The ABSD will be raised by 5 percentage points for citizens and permanent residents buying second and subsequent homes, and by 10 percentage points for entities.
Furthermore, LTV limits would be tightened by 5 percentage points, effectively limiting the amount of housing loan a buyer can borrow.