End of Re-Issue of OTP for new launches

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Cooling Measures, Latest happenings, New Launches

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On 28 September, Controller of Housing stopped the re-issue of OTPs for new project sales with immediate effect. The motivation behind this new measure is to ensure that buyers are prudent with their purchases. Besides that, also not to let buyers who need to sell their current unit to fund the purchase. This group of buyers may potentially be ‘force’ to sell their unit or to let the OTP lapse when the re-issue of OTP deadline is up, thus potentially losing money unnecessarily.

What are the effects after the new cooling measure?

With this new ruling, the new purchase for October came down substantially from Sept. There are only a total of 626 units sold in Oct as compared to 939 in Jun, 980 in Jul, 1161 in Aug and 1276 in Sept. We are still monitoring the sales volume, will put in more details here. Please find below chart extracted from OrangeTee Research for your reference.

Whats next? Is there any work around?

COH knows that there are genuine cases and they had came out with an option for buyers. In the event the buyer need to extend the OTP due to genuine reasons and developer is agreeable, the buyer can write in to COH for consideration. The max COH can approve will be to extend the deadline to 12 weeks instead of the current 5 weeks exercise date and 8 weeks completion.

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