Property price rose 10.1% in 2021 for this developed property market.

Property price rose 10.1% in 2021 for this developed property market.

Nope, not Malaysia yeah. We probably have a positive number too for the whole of 2021 in terms of property price increase but unlikely to be anywhere near some of these advanced property markets which seem to be immune to the Covid-19 situation.

I just wrote this recently. Property prices rising at fastest pace in 17 years?. I always wonder what’s the difference between the Covid-19 situation over there in the UK versus here in Malaysia. The sentiment seems positive despite the number of cases as below. So, perhaps they are a developed property market? Where the buyers know that they need to look further ahead versus being influenced by the short-term situation?

Now let’s look at another developed property market. Mature property market which is also considered a safe haven for property here in South East Asia.

Article in cnbc.com Singapore property prices are set to keep climbing in 2022, but at a slower pace. Private home prices increased 10.6% in 2021 and is expected to rise further in 2022 by between 1% – 4% according to real estate agencies Knight Frank and JLL. Other reasons supporting the price increase include lower interest rates, limited supply and strong demand.

Due to the price increase, Singapore has introduced new measures in mid December 2021 which included higher taxes on second and subsequent purchases and tighter limits on loans. Please do read the full article here: Article in cnbc.com

With cooling measures…

With cooling measures, the government is definitely aiming at reducing the demand for properties and thus this will reduce the number of transactions and even delay some purchases when people saw that just paying the taxes alone would be substantial. They may not want to pay those extra taxes. Perhaps can use some of the funds to go travelling instead?

Accommodative for growth versus worried about inflation

In Malaysia, Bank Negara Malaysia is looking at being accommodative to growth first versus being too worried about the effects from potential inflation. Interest rates will rise in H2 2022. Let’s be ready and be happy too. Just need to note that interest rates may rise in the second half in order to dampen inflation which is not a good thing as it will make it more expensive for everyone to buy anything including property.

Happy learning.

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