Property developers get creative in the face of new cooling measures

Rebecca Foster | Jan 22, 2013 | Comments 0

EL Development is beginning construction of La Fiesta in March to attract buyers with an early completion date

Property developers in Singapore will get more creative to generate sales after the latest round of cooling measures, according to industry analysts.

Channel News Asia reports that EL Development is planning to complete its current condominium project a year ahead of schedule to entice buyers.

"We will speed up our construction progress, we intend to commence construction in March, early March. By completing our project earlier, we believe we will be able to draw buyers who are looking for self-occupation," said Lim Yew Soon, managing director at EL Development.

380 units out of 500 launched at EL Development's La Fiesta project were sold before the new cooling measures kicked in on January 12. Sales have since slowed, and EL Development is now offering discounts of up to 24 percent of the selling price to attract buyers.

EL Development also plan to explore opportunities overseas, in Malaysia's Iskandar region, Myanmar and China.

Many developers are offering further discounts to property to soften the impact of the increase in Additional Buyer's Stamp Duty (ABSD), according to analysts.

"If you are in the midst of a launch, the developer can't have sales stagnating. The best thing they could do is to absorb the ABSD. That is why the discounts that they are giving is around five to seven percent," said Colin Tan, director of research and consultancy at Chesterton Suntec International.

Some analysts have suggested that developers should target their products towards Singaporean first time buyers, as they are not affected by the latest round of cooling measures.

Analysts anticipate developers to focus on maximising space usage and right sizing units in future projects.

"The way to go is still catering to families with room types catering to them but because of the affordability issue, developers may be prompted to look at smaller sizes of apartments," said Shia Siew Chuin, director of research and advisory at Colliers International.

However, analysts added that developers should be cautious that new measures to generate sales do not contradict the intention of the cooling measures.

 

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Filed Under: News • News by Country • Singapore

Tags: ABSD • Additional Buyers Stamp Duty • China • cooling measures • EL Development • iskandar • La Fiesta • Malaysia • Myanmar • property market Singapore • property sales Singapore • property singapore • Singapore • singapore cooling measures • Singapore property development

Article source: http://www.thethailandlinks.com/2013/01/22/property-developers-get-creative-in-the-face-of-new-cooling-measures/