Developers still hope for demand-side measures from the government to develop the property market.
After the government revealed its budget for 2009 in 22 January, it presented supply-side measures in order to prop up the prices of homes by reducing new residences in the property market.
In order to help the developers to restrain several projects in these weak market situations, the government postponed the property tax for land supported for expansion for two years or till the project achieves the Temporary Occupation Permit (TOP) – whichever will be earlier.
The 40 percent property tax rebate for commercial and industrial properties for the year 2009 was also provided – a move which will reduce the cash burden and operating cost of developers.
However, the supply-side measures are not sufficient to aid the market, several consultants and developers told BT at the Real Estate Developers Association of Singapore (REDAS) Spring Festival dine yesterday.
“We are still hoping that the government will do something about the stamp duty, and also bring back the DPS (Deferred Payment Scheme) in some way,” a developer informed BT.
The developers want the stamp tax that purchasers pay when they buy a property reduced from almost 3 percent now, and will also like to perceive the deferred tax collection until the project gets TOP. Bringing back the DPS – under which purchasers could make a 10 percent down payment, and pay for the rest upon TOP – will lead to further purchasing interest, as it was expected.
Developers would go ahead with some large project releases this year. For example, the UOL Group expects to straighten its mass-market and mid-tier development in Simei, which will comprise approximately 600 units sometime during the first half of the year. Property Company CB Richard Ellis said that 94 projects are all ready for launch.
During the launch, Simon Cheong, the president of Redas said that his firm stands prepared to keep an uninterrupted dialogue with the government in order to guarantee apropos feedback so that the various measures and proposals of the government can be successfully implemented.
Mister Cheong stated that several Redas members informed him about their intention to impart the 40 percent rebate on property tax to tenants. “We however only ask that tenants be reasonable,” he said. “Requests for substantial reduction in rentals is are neither realistic nor sustainable for building owners in the long run.”