To those who have been following Singapore’s property market news, it has not been that awesome. Prices have fallen, especially for the luxury ones but it included even those HDB flats too. Developers are really shouting and crying out loud that they are facing huge pressure without government support. The support they needed would be of course for the easing of property market cooling measures. In fact some said these must be done sooner than later. read here: Singapore property, prices continuously declining into 2015
Well, in an article in PropertyGuru.com.sg, it does seem that the Singaporean government has also realised this and may take some preliminary actions. However, it may not be sudden or very soon. Singapore’s largest banking group, DBS said that they believe these easing would only happen by end of 2015. The reason is because while there has been slight drops, the property prices remain high and it may yet meet what the government expected. The pressure to act would begin towards end of the year when the supply completion is increased. A total of 50,900 new housing is forecasted to swarm the market thus pushing for a better balance between supply and demand.
Another reason would also be because of the increase in interest rates of between 1.5 to 2.0 percent. In Singapore, this is considered very significant. If the Singaporean government does act, this marks the success of the cooling measures first introduced in 2009. In fact some reports pointed out that there has been 8 rounds of such cooling measures! Read more here: http://www.ezproperty.sg/singapore-property-cooling-measures
I consider this as good news for the market. It meant the property bubble expected previously may no longer happen. Nope, I do not consider this as a positive news for Iskandar. Of course, if bubble did burst, it would cause more harm in terms of sentiment. Happy reading.
written on 12 Apr 2015
Next suggested article: Singapore Sentosa property trouble. Collapse?
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