Emaar Palma investors start to flip

The doubling of property transfer fee isn’t stopping flippers as investors in Emaar Properties latest Palma project in Arabian Ranches, on Sunday, a day after its launch, have started selling their units in the secondary market, seeking premiums of five to seven per cent.

Property agents posted adverts selling three and five bedroom villas with a five to seven per cent premium on the original price. The agents, who have listed the villas, refused to comment.

Emaar sold three-bed villas for nearly Dh3.5 million while five beds were priced over Dh4.5 million, industry sources told Emirates 24/7. It is understood that the developer still has the 40 per cent payment clause to stop reselling.

In a bid to stop flippers, the Dubai Land Department (DLD) last Thursday increased property registration fee to 4 per cent from 2 per cent.

Effective October 6, the new registration fees covers all property transactions in the emirate of Dubai except for the industrial sector, including warehouses.

DLD Director-General Sultan Butti bin Mejren had said: “"The move is aimed to stop quick transactions (flipping) which are unhealthy for the market and result in sudden price increases. The decision has come at the right time… the market has matured and investor confidence is growing. The move in not likely to have any negative impact."

Palma project comprises 121 three- to five-bedroom Spanish-inspired villas in the Arabian Ranches gated community.

In August, Standard Chartered said that despite prices soaring Dubai's property market is not heading towards another crash with market now more sustainable, being influenced by an improved economy rather than speculation that will not repeat the same boom-and-bust cycle of 2008. Earlier, the International Monetary Fund said that Dubai might need to intervene in its property market to prevent another boom-and-bust cycle.

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