Home prices in Singapore are expected to fall further due to the looming deadline for developers to sell unsold inventory, according to news reports citing Nomura.
The Japanese financial institution explained time is running out for many residential projects with unsold units, as they will soon be subjected to hefty fines under the Additional Buyers’ Stamp Duty (ABSD).
It seems that home builders are still hesitant to cut prices, it noted, but that is expected to change in 2015 due to the substantial fines on unsold inventory. Moreover, lower prices could encourage the government to revise its current housing policy. Additionally, developers still have the margin to reduce prices.
Additionally, lower prices could entice buyers to return to the market, especially for units with an average price of $2 million and below. It could also pave the way for the government to ease its cooling measures towards the end of the year.
Meanwhile, developers are likely change their marketing strategy in light of UOB’s $181 million lawsuit against Lippo Group, after it failed to inform the bank of substantial discounts given to buyers of high-end condos at Marina Collection (pictured) in Sentosa.
Specifically, UOB financed 38 units with an average price of $6 million. However, 37 have defaulted and the developer failed to reveal the 22 to 34 percent discounts given to the buyers, according to media reports.
Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
