Another round of cooling measures on Singapore's property market =
The Singapore Government has on Monday introduced a new round of cooling measures to
ensure property prices remain stable and sustainable. The Seller’s Stamp Duty previously
applicable to property buyers who buy and sell their property within one year, is now extended to property buyers who buy and sell within three years. In addition, for property buyers who already have one or more outstanding housing loans at the time of new housing purchase, are now required to make minimum cash payment of 10%, instead of 5% previously, of the valuation limit, and are only allowed to finance with bank loan up to 70% of their property valuation, compared to 80% previously. The government also said more measures will be introduced should the need arise, including injecting an even larger supply of private housing in 1H2011 GLS Programme, in order to promote a stable and sustainable property market.
Prices likely to trend sideway for rest of the year We believe the above measures will taper off the sentiments of short-term property investors. We see demand from genuine property buyers remain healthy due to stable economy outlook, but expect wait-and-see approach from property buyers in the short term. As a result, sale volume of private residential property is likely to drop, particularly in the mass and mid-market segments.
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