CHALLENGES FOR Social Selling
While a lack of fresh supply of personal advances and more favourable loan interest rates for prospective buyers may serve designers ‘ appetite to develop more, the price to pay for a shared land sale may prove too much for them, said authorities.
They flagged problems from designers about the original purchase cost, as well as the costs associated with reconstruction and the potential market for new models.
Mr Nicholas Mak, key research officer at home site Mogul. gs, noted that 80 per cent of the personal accommodation products sold in the market last year were from the Government Land Income programme under which state property is released for private programmers.
The remaining was from the private land sale market.
Cooling measures introduced in 2023 have reduced investment demand from foreigners and caused pause for Singaporeans considering buying more properties, which will make it riskier for developers to invest in such land acquisition, said Mr Mak.
This is because the developers have to gather enough sales to complete and sell a development after acquiring the site within five years.
Singaporeans must now fork out 20 per cent in additional buyer’s stamp duty for a second property if they are still holding onto their first. For foreigners, this figure is 60 per cent.
“If ( developers ) can’t count on foreign demand, for example, it’s going to cause them to hesitate to buy en-bloc sale land, ” Mr Mak said.
He noted that developers are likely to continue to go down the Government Land Sales route, as supply is being ramped up.