11 months into the implementation of the property cooling measures, Minister for National Development Lawrence Wong has expressed his satisfaction in them having achieved the desired result of stabilising the market.
Stabilising property market a sign property curbs have worked
Before last July’s property curbs, which were the latest rounds of cooling measures implemented, property prices were rising sharply at an increasing pace.
The authorities rolled out the cooling measures with the aim of preventing prices from outpacing market fundamentals.
Demands from buyers were high at that time and showed no signs of slowing.
Last July’s property curbs included an increase of the Additional Buyer’s Stamp Duty (ABSD) of 5% for Singaporeans and permanent residents buying their second and subsequent residential property.
Stricter limits were also placed on the loan-t0-value (LTV) limits on all housing loans from banks and other financial institutions.
Property industry players can take a brief breather as no new measures are expected anytime soon. Existing measures however are here to stay.
Global certainties could have burst a property bubble
Uncertainties from the US-China traded war and Brexit situations loom and should the government have allowed the market to continue booming at the rate last year, the industry may have had a lot more instability to deal with this year.
Since last July’s round of cooling measures, transaction volumes have fallen and property prices have also dipped for 2 consecutive quarters.
While the curbs are less than a year into implementation, property analysts say the property cycle usually runs longer which could mean the real results are only seen in 2 to 3 years’ time.
Some of of the very real and current concerns come from developers and home owners who may find it increasingly difficult to sell their properties.