Singapore's Home Cooling Measures May Stay for Some Time, Minister Says
The cooling measures in Singapore started since 2009 and National Development Minister Lawrence Wong indicated that they are likely to stay for some time.
There were some expectations that some developers are hoping to get some reprieves from 2017’s Budget but the government is committed to cool the housing market. With residential prices falling 3 per cent in 2016, the market is seen as “very resilient”.
A consultancy director felt that the perception of prices are at the bottom area and in 2017, pricing of property will be realistic. However, this would depending on the interest rates and economic growth in 2017.
Real Estate Developers expects the cooling measure to stay for at least 1 year. The government is seen to be reluctant to pull back because of the risk of overheating the market.
Some of the cooling measures imposed were Additional Buyer’s Stamp Duty, Total Debt Servicing Ratio (debt capping at 60% of borrower’s income), Seller’s Stamp Duty and Restricted Loan Tenure.
In the Budget, the government includes bigger CPF housing grants for HDB resale flats.
Reference: Bloomberg Markets (Click Here)