Additonal Buyer`s Stamp Duty (ABSD)

Additional Buyer’s Stamp Duty (ABSD)
Additional Buyer’s Stamp Duty (ABSD)
Who affected?
• Foreigners, companies
• SPRs with 1 or more residential properties
• Singaporeans (SC) with 2 or more residential
properties
• Owned wholly, partially, or jointly with
others
ABSD
Existing SD
(abt 3%)
ABSD
SC buying 1st
/ 2nd pty
PRs buying
1st
Foreigners
nonindividuals
Yes
Yes
Yes
Yes
NIL
10%
3%
3%
PRs with 1 & SC owning 2
buying
& buying
2nd/more
3rd/more
HOW DO WE SELL WITH ABSD?
STRONG DEMAND
STRONG FUNDAMENTALS
REMEMBER 13 JAN
SSD was introduced
Market stabilises
Government’s aim is sustainable growth
Units
2000
1800
MONTHLY SALES
Jan
• SSD
• LTV
Aug
• Europe Debt Crisis
Jun
• HDB announces 50k BTO flats
• Minister Khaw cautions against market exuberance in 2011-2012
• MND releases 30 residential sites in H2 2011 GLS
• HDB raises income ceilings
for HDB flats & ECs
Mar
US Budget Crisis
1,631
1600
1400
1200
31 Jul
Ghost Month
FEO RESPONSE
1% to 3% FV
1,210
Market
1,351
1,387
Jan-Oct new sales
14,030
1000
800
Jan
Feb
Mar
Apr
May
Jun
Market
Source: URA Realis
Note: All residential properties, excluding ECs
Jul
Aug
Sep
Oct
Nov
GOVERNMENT’S OBJECTIVE
“.. Sustainable residential market where prices move
in line with economic fundaments ….”
“…. even with current economic uncertainties, the
demand for private property remains firm
“… to moderate investment demand for private
residential property and promote a stable and
sustainable market
STRONG FUNDAMENTALS - DEMAND
Government
“ Given the uncertainty in stock markets, and
with interest rates remaining low, private
property in Singapore continues to attract
investors, local and foreign
“ ….. in view of the large pool of external
liquidity and strong buying interest from
abroad ……
STRONG FUNDAMENTALS
Credo Research
HDB resale prices will support private residential prices
HDB under-built from 2001 to 2010
2001 to 2010
Population growth
26%
4m to 5m
Household growth
25%
915K to 1145K
Growth in total number of houses in
Singapore – private and public
12%
1.04m to 1.2m
1990 to 2010
2010 to 2011
5,200 units
25,000 units or
jump of 380%
HDB supply per year
STRONG FUNDAMENTALS
Credo Research
HDB resale prices form the floor of the private mass market
200
HDB Resale Index
150
126
100
Source: URA Realis, Housing Development Board
187
STRONG FUNDAMENTALS
Past Experience
HDB upgraders will leverage on opportunities
% of HDB
buyers
70%
60%
50%
40%
30%
20%
10%
0%
Global Financial Crisis
Jan 2011 Property Measures
Loan-to-value
Sellers’ Stamp Duty
MONEY LOOKIING FOR INVESTMENT
SIBOR (S$)
& LOW INTEREST RATES
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.39
0.50
0.00
2001
2002
2003
2004
2005
2006
2007
2008
2009
Dec 11
2010 Feb-11
POSITIVE GROWTH
2012 GDP Projections
Government
1-3%
DBS
3.5 %
OCBC
3-4%
Citibank
3.0 %
UOB
2.5 %
Visitors (mil)
18
Receipts (S$ bil)
35
17m
16
$30b
14
12m
12
6
4
2
0
25
$24b
10
8
13m
30
20
$19b
15
6m
10
$7b
2003
5
2004
2005
2006
2007
Visitor Arrivals (mil)
Source: Singapore Tourism Board
2008
2009
2010
2011F
Tourism Receipts ($bil)
2015F
0
“MRT stations within 600m of every
household in a decade’s time.”
- Transport Minister Lui Tuck Yew, 4 Oct 2011
To be completed
by 2016
 Opened in 8 Oct 2011
Source: URA
Source: URA
Source: URA
Projected growth of HNWIs
- high net-worth individual with assets above US$1 mil, excluding primary residence
No. of HNWI (‘000)
Country
% Growth
2010
2015 F
China
502
1,378
175 %
India
173
403
133 %
Singapore
64
129
102 %
Indonesia
33
99
200 %
Malaysia
32
68
113 %
Total
1,161
2,821
143 %
Source: Julius Baer Wealth Report: Asia 2011
WHY SELL FEO PROJECT?
ADVANTAGES
• Responsive – 13 Jan
• No co-broking
• Widest choice
– Less effort for you
• Preferred agents programme
– Materials to help you sell
– Tours, etc
OPPORTUNITIES IN INDUSTRIAL &
OFFICE SECTORS
KEY ATTRACTIVENESS
•
•
•
•
•
•
No SSD or ABSD
LTV 80%
Low interest rate
Attractive rental yield
No restriction on foreign ownership
Good fundamentals
Far East Organization’s Industrial/
Commercial Projects
Industrial
• Eunos Technolink
• Eunos Techpark 2
• Westlink One
• Westlink Two
• Innovation Place
• Prestigio
• Enterprise One
Commercial
• Central
• PS 100 (upcoming
launch)
• The Index
(upcoming launch)
Returns on Investment
e.g. Eunos Techpark 2 Rental Yields
#03-01 (3,714 sq ft) - $2.00 psf, Expires Mar 2013
6.3% yield
#03-19 (3,714 sq ft) - $1.70 psf, Expires Nov 2011
5.4% yield
#04-10 (3,724 sq ft) - $1.70 psf, Expires Dec 2011
5.3% yield
OFFICE 1
OFFICE 2
SOHO
RETAIL @ CENTRAL
MRT
STATION
SINGAPORE RIVER
Central Offices
Floor-to-Floor
Height: 4.5m
Typical Office
Height: 2.8m
Thank You
Disclaimer:
This presentation is intended for information purposes only and, Far East Organization and its affiliates are not soliciting, advising or recommending any action
based on the information, opinions, forecasts or views (including without limitation any information relating to the rental yield/return of the property and any financial
examples relating thereto which is for sole purpose of illustration only). No representation or warranty, either express or implied, is provided in relation to the
accuracy, completeness, reliability or fitness of purpose of any of the said information, opinions, forecasts or views contained herein. This document should not be
regarded by the recipients as a substitute for the exercise of their own judgement. No liability is accepted whatsoever for any direct, indirect or consequential loss
howsoever arising from the use of this document