03-04-2017, 02:17 PM
Singapore Property Developers Have a New Headache
by Pooja Thakur Mahrotri
April 3, 2017, 5:00 AM GMT+8 Updated on April 3, 2017, 9:24 AM GMT+8
Singapore’s recent unwinding of some property curbs, which initially appeared to boost prospects for developers, may instead be creating new problems.
After regulators closed a tax loophole that allowed developers to offload apartments in bulk to institutional investors and wealthy Singaporeans, many of the city’s builders now face an unpalatable choice: discount unsold luxury homes or pay stiff penalties for missing government-mandated sales deadlines.
Read More: Singapore Eases Property Curbs After Housing Prices Decline
Opting for discounts could push home prices even lower, prolonging a three-year slide in property values. The alternative could be even more costly. About 2,098 homes remain unsold in 57 projects and penalties on these could total about S$647 million ($463 million) this year, according to industry estimates based on official data.
More details in https://www.bloomberg.com/news/articles/...w-headache
by Pooja Thakur Mahrotri
April 3, 2017, 5:00 AM GMT+8 Updated on April 3, 2017, 9:24 AM GMT+8
Singapore’s recent unwinding of some property curbs, which initially appeared to boost prospects for developers, may instead be creating new problems.
After regulators closed a tax loophole that allowed developers to offload apartments in bulk to institutional investors and wealthy Singaporeans, many of the city’s builders now face an unpalatable choice: discount unsold luxury homes or pay stiff penalties for missing government-mandated sales deadlines.
Read More: Singapore Eases Property Curbs After Housing Prices Decline
Opting for discounts could push home prices even lower, prolonging a three-year slide in property values. The alternative could be even more costly. About 2,098 homes remain unsold in 57 projects and penalties on these could total about S$647 million ($463 million) this year, according to industry estimates based on official data.
More details in https://www.bloomberg.com/news/articles/...w-headache