A move that would dash the hopes of home buyers, our Minister of National Development Lawrence Wong commented that property (cooling measures) curbs on homes are likely to stay for some time, as market demand remains “very resilient”.
In a Bloomberg Television interview, Mr Wong said property cooling measures “have helped to achieve a soft landing in the property market” and that “If you look at the market today, demand remains very resilient.”
In agreement, property experts expressed their views on why it’s too early to remove the property curbs:
Mr Tay Hong Beng, head of real estate at KPMG in Singapore: The Government may be concerned that “the existing economic conditions with generally lower interest rates and relative affordability of the residential properties may create an unmanageable spike in demand from both foreign and local investors”
JLL national director for research and consultancy Ong Teck Hui:
Resale price index will “certainly stabilise or perhaps rise slightly with increased demand and higher resale volume”. This is in view of this year’s Budget where CPF housing grants is increased up to $50k.
“A healthy Housing Board resale market with stable prices could encourage those aspiring to upgrade to private homes and lift the demand for them” he added
Mr Lim Ming Yan, president and chief executive of CapitaLand: “We see volume picking up, and the price declines have slowed,” he told Bloomberg earlier this month, noting that “there is no compelling reason for the Government to lift the curbs.”
International Property Advisor key executive officer Ku Swee Yong: “The Government is probably reluctant to pull back on the curbs because there remain the risks that doing so will overheat the market again.”
For home buyers reluctant to pay ABSD (additional buyer stamp duty), one of the cooling measures implemented since late 2011, they can consider an executive condominium purchase.
For private developments, developers are pricing their condominiums at attractive pricing to move units during launch. You can consider upcoming new launches such as Grandeur Park Residences at Tanah Merah MRT (East area), Park Place Residences at Paya Lebar MRT (city fringe) or The Clement Canopy in Clementi Ave 1 (West area).
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For listing of current executive condo on sale and upcoming EC launches, please click here.
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