Time to Lift Cooling Measures Singapore?
April 23, 2015 - Singapore
The Singaporean government’s interventionist cooling measures on the property market are clearly proving effective as total transaction volumes fell by 13% quarter on quarter during Q4 of 2014, the second consecutive quarter of decline.
Over the whole of 2014, the total number of units sold decreased by a remarkable 44 percent year-on-year to 12,723 units.
Prices also dropped as private home prices were seen to decrease by 1.1 percent quarter-on-quarter during Q4, representing the fifth consecutive quarter of decline [...].
Cooling measures such as limiting mortgage terms, a hike in Additional Buyer’s Stamp Duty (ABSD), tighter loan-to-value (LTV) limits and an increase in the minimum cash deposit on property purchases were imposed after a huge 38.2% increase in prices was seen during the second quarter of 2010.
[...] So what does 2015 hold for Singapore’s housing market? JLL report that over 1000 units have completed during Q1 reflecting a rising trend in supply compared to the 532 units completed in the same period during 2013.
Knight Frank are clear that developers need to work hard to revive sales, by moderating pricing and rolling out ‘attractive product positioning’.
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Trends, property tax, property taxes