02-08-2012, 07:30 AM
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The Straits Times
www.straitstimes.com
Published on Aug 02, 2012
Home prices 'likely to remain stable'
CapitaLand sees no need for more cooling measures as foreign buying dips
By Esther Teo Property Reporter
HOME prices are likely to flatline over the next six months, with falling interest from foreign home buyers eliminating the need for more cooling measures, according to CapitaLand bosses yesterday.
President and chief executive Liew Mun Leong said the additional buyer's stamp duty of up to 10 per cent introduced in December last year has met its aim of dampening foreign demand.
Foreign buyers and companies accounted for only 7 per cent of the private home market in the first half of the year, down from 20 per cent for all of last year.
"What the Government wants to do is to make sure that foreign buyers are not overheating the purchase of apartments," said Mr Liew, speaking at the company's half-year results briefing at Capital Tower. "I think that has been effective. Whether they will do more because we've done better in the second quarter is anybody's guess. But with that objective met, my personal view is I don't think they will further tighten it."
Mr Wong Heang Fine, chief executive of CapitaLand Residential, told the meeting that "strong fundamentals" will keep home prices stable for this half of the year.
Developers sold almost 12,000 new homes in the first half of the year, 48 per cent more than in the same period last year.
But CapitaLand sold just 259 homes here in the first half, with a total value of $467 million, in projects such as Sky Habitat, The Interlace and d'Leedon. Mr Wong said new units will continue to be released at its launched projects, which should lead to more sales in the second half.
Home purchasing momentum accelerated in the second quarter in China and Singapore, compared with the first quarter, the company noted. CapitaLand has invested $2.4 billion in new projects this year, including buying the Olinas Mall in Tokyo and office project Twenty Anson here, and has a war chest of $5.1 billion.
Mr Liew said this strong cash position allows it to take advantage of any opportunistic acquisitions that might arise due to the unravelling euro-zone crisis.
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The Straits Times
www.straitstimes.com
Published on Aug 02, 2012
Home prices 'likely to remain stable'
CapitaLand sees no need for more cooling measures as foreign buying dips
By Esther Teo Property Reporter
HOME prices are likely to flatline over the next six months, with falling interest from foreign home buyers eliminating the need for more cooling measures, according to CapitaLand bosses yesterday.
President and chief executive Liew Mun Leong said the additional buyer's stamp duty of up to 10 per cent introduced in December last year has met its aim of dampening foreign demand.
Foreign buyers and companies accounted for only 7 per cent of the private home market in the first half of the year, down from 20 per cent for all of last year.
"What the Government wants to do is to make sure that foreign buyers are not overheating the purchase of apartments," said Mr Liew, speaking at the company's half-year results briefing at Capital Tower. "I think that has been effective. Whether they will do more because we've done better in the second quarter is anybody's guess. But with that objective met, my personal view is I don't think they will further tighten it."
Mr Wong Heang Fine, chief executive of CapitaLand Residential, told the meeting that "strong fundamentals" will keep home prices stable for this half of the year.
Developers sold almost 12,000 new homes in the first half of the year, 48 per cent more than in the same period last year.
But CapitaLand sold just 259 homes here in the first half, with a total value of $467 million, in projects such as Sky Habitat, The Interlace and d'Leedon. Mr Wong said new units will continue to be released at its launched projects, which should lead to more sales in the second half.
Home purchasing momentum accelerated in the second quarter in China and Singapore, compared with the first quarter, the company noted. CapitaLand has invested $2.4 billion in new projects this year, including buying the Olinas Mall in Tokyo and office project Twenty Anson here, and has a war chest of $5.1 billion.
Mr Liew said this strong cash position allows it to take advantage of any opportunistic acquisitions that might arise due to the unravelling euro-zone crisis.
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