Developers urge immediate review of property curbs as economic woes bite

Penalties for unsold stock could hit $100m this year.

The Real Estate Developers Association of Singapore (REDAS) urged policymakers to review property cooling measures as soon as possible in order to avoid causing “further damage” to Singapore’s already-fragile economy.

Speaking at the annual Spring Festival Lunch, REDAS President Augustine Tan said that some 700 unsold units across 13 developments will be affected by Qualifying Certificate (QC) charges in 2016, with estimated charges amounting close to $100 million.

Tan also flagged the effect of Additional Buyer’s Stamp Duty (ABSD) charges, which, together with QC penalties, will put further pressures on prices. 

“The real estate market is reeling from the compounding effects of an oversupply situation, rising vacancy rates, weak demand and increasing interest rates. Furthermore, should the ongoing volatility of the stock markets persist, which is a real risk, this could severely impact the property market,” Tan warned.

“There is therefore an urgent need for action to bring stability and ensure a soft landing to prevent further damage to the fragile economy,” Tan said.

Tan noted that prices will be kept in check by prudent TDSR measures together and the soft economic outlook.

“Since 2009, the successive introduction of the Government’s property measures has cooled the market, bringing down transactions and prices. It is therefore timely to consider a calibration of the cooling measures,” he said.