Saturday, February 9, 2008

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Chronology of Major events that impact the Singapore property market (II): 1997 to 2003

The Asian financial crisis. Property price plunged.
Reversal of Anti-speculation policy implemented in 1996:
Removal of $30,000 cap
HDB owners allowed to book a new private property only after occupying the flat for 5years.
Government sale sites deferred and project completion period (PCP) extended for up to 8 yearsl.
Stamp duty for sellers was suspended.

Graph shows the Property Price Index (Click on the image to view details.)

More Property policy reversal:
Land sales were suspended; 15% property tax rebate for commercial and industrial properties commencing July 1998; Property tax exemption for land under development reinstated; exemption will be for a period of up to 5 years,
and will apply from the time construction begins to the time the TOP is granted
1998 (Jun) Off-Budget measures implemented including more property policy revisions. Land sales were suspended and more tax
exemptions granted; stamp duty deferred for buyer of uncompleted properties until TOP or subsequent sale.
1998 (Nov) 10% CPF housing grant cut; more tax rebates

1999 (Feb) Budget 1999 -The 55% property tax rebate on industrial and commercial properties, first announced in the June 1998 off budget
measures, will be extended by another year to 30 June 2000 ( 99)
1999 (May) Second CPF housing grant cut.
1999 (Sep) Government to resume land sales in 2000

2000 (Feb) Budget 2000 - Tax exemption on land under development withdrawn; change will only affect new projects; Projects which
have been granted tax exemption will continue to enjoy the concession for a maximum period of 5 years or upon
completion, whichever is earlier; DC rates revised - increased by 27% on average for residential land (Feb 00); Property
tax rebate extended up to June 2001, at reduced rate of 25% (from 55%); estate duty exemption for Singapore residential
property used for business activity;
2000 (June) HDB owners required to seek approval before booking private property even if they have fulfilled the 5-year time bar.
Global oil price hike

2001 Collapse of dotCom bubble
2001 (June) GLS - Introduction of Reserve List System for 2H 2001
2001 (Aug) MND announced that less than 8,000 new public flats will be built in 2001
2001 (Sept) 11th Sep 01 attack on the World Trade Centre in New York
2001 (Oct) Off-Budget 2001- Capital gains tax was lifted, foreigners were allowed to use SingDollar for housing loan, GLS
(Confirmed List ) was suspended. Sites would only be made available through the Reserve List. Property tax was exempted for a period of 2 years for land under development.

2002 (Apr) Recommendations by ERC sub-committee on taxation, CPF, wages and land.
2002 (May) Budget 2002 - Loss-transfer system of group relief; GST increased from 3% to 5% from 1 Jan 2003
2002 (July ) Refocusing the CPF System - Minimum Sum will be raised to $80,000 on 1 July 2003, of which $40,000 can be in
property; limit CPF withdrawals for housing to 150% of the value of property and bring the limit down to 120% in equal
steps over 5 years
2002 (Sep) For purchase of ECs, a minimum 10% of the downpayment will have to be paid in cash, while the remaining 10% can be
paid out using CPF funds
2002 (Dec) Extension of 2001 Off-Budget Measures - Fixed rebate of up to $8,000 per year for all commercial and industrial
properties; also, 30% rebate for the remaining property tax payable; 2 years property tax exemption for all land under
development with immediate effect; stamp duty rates reduced by 30% on all instruments.
2002 (Dec) GLS Confirmed List suspension extended to 1H2003. Defer the release of BFC site for sale in 1H2003

Outbreak of SARS & Gulf War

To be continued:
Chronology of major events that impact the Singapore property market(III): 2003 to 2008
We shall look at the gloomiest decade in the Singapore property market, its subsequent recovery and finally, conduct an analysis of the lessons learned through these historical events.


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The blogger here has been affectionately named by close allies as "Smart Buyer" but really, he's not smart. Smart Buyer just believes that being prudent is smart. That's the essence of the message of this blog and Smart Buyer hopes it'll benefit other property buyers.

Smart Buyer :)