SINGAPORE (EDGEPROP) - The Real Estate Developers’ Association of Singapore (Redas) responded to the government’s latest property cooling measures as ‘tough’ and ‘unexpected’. In a press release on Dec 16, the association states that it feels the recalibrated measures come as the property market is “beginning to emerge from the challenging Covid-19 situation”.

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It pointed out that the increase in the Additional Buyer’s Stamp Duty (ABSD) for land purchases from 25% previously to 35% under the revised measures impose “immense additional pressure on land acquisition as they compress their development, sales, project completion period and land replenishment cycle time in order to meet the stringent requirements for the remission”.

Redas suggests that the government differentiate the remission criteria for projects of different sizes, especially as the construction sector continues to struggle to meet project completion deadline.

“The property market should be allowed a bit more time to recover and reach a sustained equilibrium. The measures are sudden and we hope the Government will consider some leeway on certain deserving cases,” says Redas.

It asks the government to consider allowing some developers a three-month extension to fulfil certain conditions precedent for recently purchased development land before the revised ABSD rate is applied to those purchases.

“REDAS is of the view that the existing ABSD and total debt servicing ratios in place since 2013 remain a restraining factor for foreign buyers and Singaporeans. We hope the Government will continue to maintain a sustainable property market when it reviews the cooling measures,” the association says.