Higher foreign player quota in pro league may affect local football development: Analysts
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CNA
37 minutes ago
- CNA
Higher seller's stamp duty, longer holding period for private homes to have limited impact on market: Analysts
SINGAPORE: The increase in seller's stamp duty (SSD) and holding period for private properties is meant to curb speculative growth and is expected to have a limited impact on the property market, analysts said. On Thursday (Jul 3), the Ministry of National Development (MND) announced that the holding period for private properties will increase from three to four years. Those who sell their property within four years of the purchase will also incur higher SSD, by 4 percentage points for each tier of the holding period, up to a maximum of 16 per cent for those who sell within a year of the purchase. The changes will be in effect for all private residential properties purchased on and after midnight on Friday. INCREASE IN SUB-SALES SINCE COVID-19 In introducing the tighter rules, the ministry said that there has been a significant increase in the sub-sale of units that were not yet completed. Market analysts said that the proportion of sub-sales in the market has been increasing steadily since the COVID-19 pandemic. Using data from the Urban Redevelopment Authority (URA), senior director of data analytics at Huttons Asia Lee Sze Teck showed that the proportion of sub-sales across all private residential properties increased from a low of 0.9 per cent in 2020 to a peak of 6.8 per cent in 2023. The proportion has since tapered down to 4.4 per cent in the first quarter of this year and 4.5 per cent in Q2 2025. ERA Singapore CEO Marcus Chu noted that since 2021, there had been a "significant jump" in sellers who sold their homes after holding them for between three and four years. Focusing on non-landed private homes, Mr Chu said that URA caveats show that in 2020, only 358 sellers sold their homes after holding them for three to four years, said Mr Chu. Last year, this number surged to a peak of 2,104 sellers, he added. Mr Chu said non-landed private homes in the Outside Central Region saw the highest volume of homeowners selling within three to four years, followed by the Rest of Central region and Core Central Region. Despite the increase, Mr Chu said that the majority of homeowners continue to sell their properties after holding them for five years or more. Accounting for the increase, executive director for research and consultancy at Savills Singapore Alan Cheong said that private residential prices remained pretty flat until just after the pandemic, when relaunches came and prices "gapped up". "Naturally, those who bought into the 2018, 2019 period would have a windfall gain. And because of their profit, they will naturally flip," said Mr Cheong, adding that these were mostly Singaporean buyers who were waiting for their properties to reach completion. "And just before completion, another new project gets launched, and this time around, the prices gapped up in the market," Mr Cheong said. "And those who bought ... fortunately or fortuitously for them, they see that massive gap up, and they are holding on to a windfall profit. They will flip." NO SIGNIFICANT IMPACT ON MARKET Property analysts said that there would not be a significant impact on the market, with majority of genuine homebuyers and long-term investors unlikely to be affected. Through the new measures, the government is discouraging short-term flipping and sub-sales, which have contributed to artificial demand and price volatility recently, associate head of research Joel Lim said. "This measure reinforces the notion that housing should be viewed primarily as a home rather than a quick investment vehicle," added Mr Lim. Head of research and data analytics at Singapore Realtors Inc Mohan Sandrasegeran pointed to transaction data, which noted that average holding periods for sub-sale units remain relatively stable and in many cases, exceed the four-year threshold. "This reinforces the view that recent market activity has been driven more by owner-occupiers and long-term investors rather than speculative flippers," Mr Mohan said. The changes have minimal impact on investors and homeowners with medium- to long-term horizons, and may even contribute to greater confidence as the market is protected against speculative swings, he added. Realion Group chief researcher and strategist Christine Sun noted that although the number of sub-sale transactions was higher than before the pandemic, quarterly transactions have been on a downtrend over the past few quarters. "Furthermore, most condominiums are purchased for owner-occupation, especially after the additional buyer's stamp duty (ABSD) has been raised several times. Those who buy properties for their own use will not be affected by the increased SSD, as they are likely to stay in the property for the long term." She suggested that the policy changes were introduced as a preventive measure to limit speculative growth, since more condominiums are due to obtain their temporary occupation permit (TOP). The number of sub-sale transactions might rise in line with the anticipated increase in private residential units securing TOP, which is projected to grow from 5,920 units in 2025 to 6,838 units in 2026 and further to 10,306 units in 2027, Ms Sun said. She also noted that several new projects are expected to be launched in the coming months. Lower interest rates will make housing loans more affordable, which in turn may spur more buying activity, she added. Huttons Asia's Mr Lee said that the tighter rules will reduce the number of sub-sales in the market, with the proportion likely to go below 2 per cent starting from 2026. "The buyers who would otherwise have bought a sub-sale unit will buy from the new sale market now as the number of sub-sale listings will reduce," he said. ERA's Mr Chu said that buyers have become more cautious alongside rising economic uncertainty in recent months, and more now see property as a long-term investment. He noted that even without the revision, higher costs from elevated interest rates and property taxes have eroded profits, likely resulting in investors holding properties for more than three years. "Since most homebuyers are genuine owner-occupiers or longer-term investors, this measure is a gentle touch rather than a heavy-handed approach on the overall market. It aims to stabilise any spikes caused by short-term investors. "It is not designed to crack down on the market but to reduce the froth from investors who sell shortly after the third year."
CNA
an hour ago
- CNA
Singapore Premier League's move to raise foreign player quota sparks concerns in football fraternity
SINGAPORE: A move to increase the number of foreign players in the Singapore Premier League (SPL) has led to concerns that it will hamper the development of local players. Observers told CNA that it may also benefit richer clubs more than others, potentially widening the gulf between them. 'Just imagine the message that you're sending out to all the local boys who want to play, want to be a professional footballer, for example,' said SPL match commentator A Shasi Kumar, a former pro footballer and head coach. 'Would you let your son or daughter play when, at the end of the day, you only have these number of (local) players? So yeah, that's a problem.' The move was part of a slew of changes to the country's professional football league that were announced on Wednesday (Jul 2) by the Football Association of Singapore. Clubs will be able to field up to seven foreigners per match, up from six. This marks the greatest number of foreign players allowed in the SPL since the league was launched in 1996. The total prize money will also more than double to S$600,000 (US$470,000), while a new reserve league – SPL2 – to develop young players will be introduced. The SPL will also become an eight-team competition after Brunei DPMM FC withdrew from the league in May. The changes, which will take effect in the new season beginning Aug 16, are aimed at boosting the competitiveness of the league. FEWER KEY POSITIONS FOR LOCAL PLAYERS Pundits told CNA that while the move may get local players fighting harder for their spot in the first team and get selected for the national squad, it will also lower their opportunities to get quality game time. Football consultant Richard Harcus said that while SPL's move is meant to make the league better, it means fewer Singaporean homegrown players will have key positions in their teams. 'Historically, when you look at football tactics across any country, when you have (foreign) players that are coming into a team, they tend to play in key positions,' noted the former head of international operations at Balestier Khalsa FC. 'So your star striker tends to be a foreigner; your star central defender tends to be a foreigner; your star midfielder tends to be a foreigner.' Harcus said his concern in the long term would be how it affects the national team. 'Players will have less opportunities to play in teams with more foreigners, and less opportunities to play in those key positions,' added the CEO of Harcus Consultancy Group. 'But time will tell. Maybe it's time for one of the great Singaporean players to step up.' Shasi said that young footballers in Singapore have already been 'falling by the wayside', given the large gap between the under-21 and the senior teams. He stressed that the messaging to players must be right but is now 'iffy', referring to youths coming up in the National Development Centre as well as national project Unleash the Roar. Aimed at raising standards of local football across all levels, the project also hopes to create a structured development system that can fuel the dreams of young players. 'Seven foreign players – I don't think I get that. I rather have it kept at four, maybe, then we go from there, and then you see more local players coming up, because I don't think the message is right at the moment,' Shasi added. Ex-pro footballer and SPL match commentator Rhysh Roshan Rai said it will be good for the league if clubs can bring in good foreign players, but a concern is a lack of game time for local players. 'It's not just about minutes played. What's important is also the quality of minutes played, in that sense,' he pointed out. MONEY TALKS Observers also said the move to include more foreign players will more likely benefit clubs that have greater financial might in signing better players. For example, reigning champions Lion City Sailors are bankrolled by Forrest Li, the billionaire founder of tech giant Sea. He was also elected as FAS' new president in April. Rai said Lion City Sailors and Tampines Rovers are clubs that could benefit from the new ruling in continental competitions. 'But, locally, in the SPL, it's going to be interesting to see how many of the other clubs out there are actually going to be able to afford quality foreign signings that will actually lift the overall standard of the league,' he added. Shasi said he believes privatisation is the only way that other SPL teams can catch up with the Lion City Sailors. 'This is nothing against Lion City Sailors. I think, fair play if they have the money. Go ahead. Go spend it, go win it, because that's how it is supposed to be, because it's a professional league. So be it,' he added. 'But I think other clubs are just playing catch-up.' Given his long-time involvement in the league, Shasi said he hopes to see more players 'push a little further' and break into their club's first team. 'They've only got four places – or three outfield places – to fight for in their own club, so I want to see these players coming up as someone who can play for Singapore,' he added.
CNA
an hour ago
- CNA
South Korea trade minister may seek extension to tariff freeze in US talks
SEOUL: South Korea's Trade Minister Yeo Han-koo said on Friday (Jul 4) that he might request an extension of the freeze on US tariffs that is set to expire within days when he heads to Washington for talks with US officials. Yeo, who became South Korea's new trade envoy last month, is due to fly to the US on Friday and plans to hold talks with US Trade Representative Jamieson Greer and other senior officials on Saturday, just ahead of the Jul 9 deadline when US tariffs could rise sharply. US President Donald Trump said his administration would start sending letters on Friday to countries specifying what tariff rates they will face on imports into the United States. Yeo said the substance of negotiations mattered more than the deadline, noting he would ask the US to take time and accelerate talks to reach a "win-win" deal. South Korea has sought exemptions from Trump's punishing tariffs on imports of automobiles and steel products, as well as a 25 per cent "reciprocal" levy on the Asian ally currently paused for negotiations. The government of Asia's fourth-largest economy, which is currently subject to a blanket 10 per cent tariff, agreed with the US in their opening round of trade talks in late April to craft a trade deal reducing tariffs by the July deadline. However, negotiations appear to have made little progress and were hampered by political uncertainty over the last few months following South Korea's martial law crisis with President Lee Jae Myung elected as the new leader on Jun 3. President Lee said on Thursday that the ongoing talks between Seoul and its ally Washington had "not been easy", adding the two sides were not clear on what they want. Washington is demanding better access to the agriculture and car sectors, and improved market access and non-discriminatory treatment in the digital sector, Minister Yeo told a parliamentary hearing on Friday. "The government will respond flexibly by taking into account the level of the US demands and domestic political security sensitivities," Yeo said. Yeo also said that the United States was asking for larger investments by South Korean companies in the country and increased South Korean purchases of US energy supplies. Although South Korea has shown interest in a US$44 billion LNG project in Alaska, Yeo said the feasibility of the project was still not clear and the US would only provide more information later in the year. At the hearing with Yeo, lawmakers from the ruling and opposition parties called for the government to make a careful assessment on whether to invest in the Alaska project or not. "Once (we're) in the wrong place, it is hard to get out," said Lee Chul-gyu, a lawmaker from the opposition People Power Party. South Korea's efforts to reach a trade deal come as Trump said Vietnam and the United States had agreed on a 20 per cent tariff rate on imports from Vietnam, down from an initial 46 per cent rate he threatened. Yeo said South Korean companies that use the Southeast Asian country as a manufacturing base would be affected by those tariffs.
