Due to the cooling measures, even the wealthy put off buying luxury homes. One such example is the good class bungalow (GCB) market which is expected to see a slowdown in sales activity this year.
GCB buyers, most of whom own more than one property, will need to fork out more cash and include the Additional Buyer’s Stamp Duty (ABSD) as part of the acquisition costs. Not only this, loan-to-value will also be pegged at 50 percent for the second property purchase and 40 percent for the third and subsequent purchase.
This would mean that the upfront cash payment required including down payment could be around 70 percent of the price of a GCB. For instance, to buy a GCB which costs S$25 million, a buyer must be prepared to pay around S$18 million in cash upfront before he or she can take up a loan to pay the remaining amount.
While the new loan curbs have contributed to depressing bungalow sales, but prices on the other hand have remained fairly resilient.
Source from property guru