“Despite the near term uncertainty about the Covid-19 situation, there is a clear upward market momentum in prices and transaction volumes. Left unchecked, prices are likely to run ahead of economic fundamentals.”
“Borrowers will also be vulnerable to likely rise in interest rate in the next year and beyond.”
“The government has decided to implement new cooling measures to reduce th risk of a self-reinforcing cycle of price increases in the private and Housing Board resale markets, which could impact housing affordability.”
“The measure will also encourage greater financial prudence among home buyers in the public housing market.”
“Crucially, our measures seek to prioritise housing purchases for genuine owner-occupation, especially among first-time home buyers.”
Source: ST 17 Dec 2021
Click Here for Singapore Property Cooling Measures 2021: Raising ABSD Rates, Tightening TDSR & LTV Limits: 16Dec2021 (epropway.com)
Investors, foreigners, en bloc hopefuls to bear brunt of new cooling measures
“HIgher upfront costs and tighter financing conditions from Singapore’s latest cooling measures are expected to significantly shrink investor appetite in the property market, especially for sales of high end homes.”
“Foreign buyers, en bloc candidates and developers could also feel the pain keenly, analysts said.”
“Meanwhile, first-time Singaporean and permanent resident (PR) home buyers are the least affected.”
” The latest round of property cooling measures appears to be targeted at dampening the inflow of red-hot foreign capital in the higher-end private housing market, while ensuring housing affordability for first-time home buyers.”
“Analyst say new curbs are likely to make developers more cautious in bidding for land and cause the en-bloc to fizzle out over time.”
“Savills Singapore managing director for investment sales and capital markets, Jeremy Lake, anticipates the latest measures to “take the heat out of the en bloc market” and prompt some collective sale candidates to give up or at least moderate their price expectations.”
