ST : Developers: Too soon to assess property curbs

10 Feb 2011,
Developers: Too soon to assess property curbs
By Esther Teo

DEVELOPERS say that although sales volumes might have fallen, it is still too early to assess the impact of the cooling measures.

Industry players at the annual Spring Festival lunch of the Real Estate Developers' Association of Singapore (Redas) yesterday noted that the Jan 13 intervention was soon followed by Chinese New Year, so buyers will need more time to take stock before deciding whether to buy.

Mr Lim Ee Seng, Redas' first vice-president and Frasers Centrepoint chief executive, said that although the number of transactions has fallen, this was expected due to buyers' initial hesitation and the uncertainty in the market after the measures were introduced.

He noted that projects launched after Jan 13 still had 'very decent take-up', demonstrating that there is still a pool of people genuinely in need of homes. 'As long as the location is good and the price is deemed to be not unduly unreasonable, they will buy,' added Mr Lim.

Developers also said the cooling steps are just one more factor to take on board when assessing investment decisions and sales campaigns.

Redas president Wong Heang Fine said that today's vibrant and dynamic market means developers are constantly reviewing their launches and marketing, irrespective of the Government's measures.

Mr Chia Ngiang Hong, Redas' second vice-president and City Developments group general manager, added that developers will have to monitor the market and plan accordingly, even as buyers re-evaluate their positions.

'It is an ongoing process that is always happening at all times, nothing is static,' Mr Chia added.

Mr Wong, who is also CapitaLand Residential chief executive, noted in his opening address that while the Government has rolled out long-term policies that have helped the industry, developers are not keen on any more measures.

'With the property market stabilising after the latest round of cooling measures by the Government, I hope that any further measures...would be made only after considering all options,' said Mr Wong.

If sales do slip, developers could introduce sweeteners to attract home buyers, but Mr Lim said market-wide incentives such as those seen in the recession have not been introduced yet.

When the property boom ended in 2008, developers started absorbing stamp duty for selected projects and rolled out gimmicks such as renovation allowances and vouchers for electrical appliances to encourage sales.

Developers are also looking forward to Budget policies that will further support economic growth, as the property sector will be able to ride on that growth, Mr Wong added. The challenge this year will be to grow on a sustainable basis and to innovate and upgrade to produce better quality homes that can continue to attract global investors.

'I think the Singapore market is now quite transformed, if you look at the tourism figures...We are very exposed to world markets now,' said Mr Wong.

He also announced that Redas will hold regular dialogues with various government agencies and industry associations this year as well as introduce specific focus groups. Mr Wong championed tapping into Generations X and Y - future leaders and home buyers - to form a youth focus group to gather the energy and ideas of younger members.

Developers also welcomed suggestions that the Government might introduce new rules to ensure that showflats accurately represent their completed products, especially with more builders entering the market.

Mr Chia said: 'If the objective is to ensure that (the showflat) is correctly represented, then it is good for the market.'

Separately, MCC Land's 320-unit Canberra Residences in Sembawang has sold 160 of the 200 preview units. The average prices of typical units range from $830 to $860 per sq ft with sizes varying between 614 sq ft and 2,250 sq ft. The project will be officially launched tomorrow.