Thursday, December 08, 2011

Additional Buyer's Stamp Duty

This is the Government's approach towards controlling speculation in property - impose complicated regulations.

There is a simpler approach. If the Government offers HDB flats at controlled prices, and the HDB flats have to be sold back to HDB at the controlled prices, similar to the situation prior to 1980, there will be no need to implement these complicated regulations. It would also address the root cause of the problem - providing affordable housing to the people. 


yujuan said...

After selling numerous tracts of State land at top prevailing market prices, the Govt with its kitty bulging with sale funds, now seize on the rare opportunity of the chaotic queuing at the launch of Bedok Residences, to clamp down on property purchases.
Really must salute the astuteness of our Govt, on its ability to seize the right chance to take action to minimize backlash to the lowest.
Both the developer and the estate agency get themselves cornered.
Many purchasers may let their booking fees run out, rather than exercising their options.
A good move to address hot money into Singapore, affecting the property fund management the most.
Sunny days over for individuals or funds booking whole floors or blocks? Hope so.

Tan Kin Lian said...

After further consideration, I wish to acknowledge that the approach taken by the Government does have its merits. It requires a foreign buyer to pay an additional tax of 10% and a local buyer, who does not own any private property, to avoid paying the tax. This gives a 10% price advantage to the local buyer. In the past, the local buyer may not have the chance to compete with the foreign buyer (who has more money) but with this 10% price advantage, they may have a better chance.

Tan Choon Hong said...

The demon of deregulation has been unleashed and, as they say, “you can’t take meat back out of a dog’s mouth.” The HDB is a runaway money train, unstoppable and unlikely to u-turn for a return to basics. The best first time buyers can hope for is for the HDB to launch your controlled-price scheme as a separate program, like another train to pick up those left on the platform. This basic scheme should incorporate innovative architectural and construction technologies that speed delivery while saving cost to provide new households with comfortable but affordable homes.

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