Have Property Cooling Measures Lost Their Punch?

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Why do cooling measures lose their potency? 1. Buyers tend to adapt to each measure; 2. Continued income and wealth growth of buyers from Q3 2013 to Q2 2017; 3. Prospect of wealth preservation and price appreciation”

So how long does it take before cooling measures lose their punch? It depends on the economic fundamentals, major events, and the geopolitical situation on the global front. There had been times when the forceful impact of such events corrected the property market without any help from the cooling measures.”

Will the covid-19 outbreak, which has led to the ongoing circuit breaker lockdown during which developers have had to shut their showflats, “finish the job” started by the July 2018 cooling measures? 1.This time around, central banks and governments are all stepping up to avoid an economic / financial collapse. As such, impact on the property market will likely be more measured; 2. Home buyers’ sentiments will remain cautious as focus will be on the economy and job security; 3. Without an asset bubble, we expect a more moderate price correction, assuming the ongoing crisis will be over by end 2020, followed by an economic recovery in 2021.”

Source: BT 16 May 2020