Saturday, February 9, 2008

About this Blog

Chronology of Major events that impact the Singapore property market from (III): 2003 to 2008

Outbreak of SARS & Gulf War - The gloomiest year in the history of the Singapore property market.
2003 (Feb) Budget 2003 - e.g. Defer restoration of CPF employer contribution rate for 2 years; lower CPF salary ceiling over 2 years;
new property tax rebate for commercial and industrial properties for 2H03.
2003 (Apr) $230 million on SARS Relief Package e.g. Additional property tax rebates for commercial properties; higher property tax
& 100% rebate of TV licence fees rebates for gazetted tourist hotels; cess rebate
2003 (Apr) Single Purpose Company Requirement for GLS sites lifted
2003 (July) Formation of HDB Corp and announcement on the public housing building programme. Programme would be opened up
to the private sector – starting with 10% in July 2006 and reaching 50% in July 2008.

Graph shows the Property Price Index from 1960 (Click on the image to view details.)
Major events that impact the Singapore property market from 1960 to 2007

Join the Smart Buyers Forum

2004 (Jun) Continued Suspension of Confirmed List. BFC Site for Sale on Reserve List
2004 (Aug) Government of Singapore - New Cabinet
2004 (Aug) Government’s invitation to foreigners to buy land in Sentosa Cove
2004 (Dec) GLS : No Confirmed List in 1H 2005
2004 (Dec) Tsunami Tragedy
2005 (Feb) Budget 2005 - REITs Incentives ; $40 mil Orchard Road Investment Enhancement Plan by STB
2005 (Apr) Government Announced Plans to Build 2 Integrated Resorts
2005 (July) Changes to the Residential Property Act - all existing and new QC applicants will be granted project completion period of 6
years from date of QC issuance (current 3-4 years); Bankers' Guarantee for QC application reduced from current 50% to 10% w.e.f. Mar 2006
2005 (July) MND Announcement on Policy Changes Affecting the Property Market - Loan-to-Value Limit raised from 80% to 90%;
Cash payment for residential properties reduced from 10% to 5%; non-related singles allowed to use their CPF to jointly but private residential properties; phase out of the Non-Residential Properties Scheme in July 2006; Restriction on the use of CPF savings for multiple properties
2005 (Nov) GLS Programme – 1 commercial site at Collyer Quay in the Confirmed List
2005 (Nov) Waiver of security requirement for developers offering Deferred Payment Scheme after the Issue of TOP

Join the Smart Buyers Forum

Budget 2006 (Feb) - tax incentives to broaden capital markets like tax exemption on foreign-sourced interest and trust
distribution received by REITs expansion; lift property tax surcharge; review of the administrative conditions for Industrial
Building Allowances; Progress Package give-out.
2006 (June) GLS Programme - 1 commercial site at Beach Road/Middle Road in the Confirmed List; further extended for reassignment
of GLS Sites by successful tenderers and private land by foreign housing developers by one year to 30 June 2007
2006 (Oct) The First Public Housing Project under the Design, Build & Sell Scheme (DBSS) was launched for sale
2006 ( 15 Dec) Stamp duty concession withdrawn – all property buyers to pay stamp duty (at up to 3% for properties worth over $360k)
within 14 days of the date of acceptance of an Option. As transitional measure, buyers who accept an Option or sign S&P
between 15-30 Dec 2006 will have until 14 March 2007 to pay the stamp duty.

Join the Smart Buyers Forum

2007(Aug)Increase in Development Charge. Based on the announced rates, the jump is estimated to be about 55 percent.
2007(Oct)Withdraw the deferred payment scheme for the sale of uncompleted private residential and commercial properties with effect from 26 Oct 2007.
These policies (together with the increasingly uncertain global economic outlook) put a brake on enbloc sales and practically purged the market of speculators.
2008(March)Saw the Singapore property market sank into a doldrum, with just about 2 property sales/day.

Some thoughts:
1. A quick glance at the graph above shows that property price escalated relentlessly from 1993 to 1996. The events that fuelled the property price were in great part due to the relaxation of using CPF monies for property investment.

Question: Is this likely to repeat itself in the years to come? given that the Singapore government is increasingly concerned about the aging population and the lack of CPF for retirement.

2. Another reason for the soaring property price in the 1990s was the years of double digit economic growth.

Question: Is Singapore still likely to enjoy years of double digit economic growth in the years ahead?

3.Property price plummeted in 1997 due to the Asian Financial Crisis, and again in 2003 due to Gulf War and SARS. It took up to 2005 for the market to show sign of recovery, and in fact, up to 2007 for the recovery to reach the mass market.

Question: What are the risks of similar events taking place in the years ahead? Looking at the past cycle, what is your assessment on the impact on the Singapore property market if such events should recur?

Return to:
Major events that impact the Singapore property market from 1960 to 2007(I).

Join the Smart Buyers Forum


Anonymous said...

Hi. I don't really agree with your comment. I think Smart Buyer is smart because he makes informed decisions and it's really great that he is willing to share his research to benefit others.

Post a Comment

Dear visitors:
Your comments are most welcome!

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 :)