The Business Times has recently reported that the current property measures in Singapore may get some revisions from the authorities soon. The information that Business Times gathered from the UOB Research said that the review will take place to ensure a better market for those who are eyeing for residential properties.
When this happens, the seller’s stamp duty will eventually decrease along with the other tax rates that are part of the so-called additional buyer’s stamp duty. However, there were forecasts prior to the report that the prices of the residential properties will decline by as much as 5 to 10 percent this year. It would affect projects such as Terra Villas, Archipelago at Bedok Reservoir, Adana at Thomson and High Park residences to name a few.
Business Times also said that home buyers are now assessed whether they could borrow a reasonable loan amount within their means. There are now many prospective home buyers who were prohibited to get a loan by the government if the latter thinks they are not capable to pay for it on time. This is because of the Total Debt Servicing Ratio implemented within the country.
However, the report from UOB mentioned a strong opinion that Singapore authorities will only allow the revision in the cooling measure if and when the home prices are already down by a minimum of 10 percent.
Couple of years ago, Singapore’s real estate authorities only took notice of the rants regarding the residential market during the 1998 Asian Financial Crisis. Also, another reason for responding and revising the cooling measures before is the dotcom bubble which apparently happened right after the said crisis. With that being said, unless the economy will be affected once again by huge external shocks, UOB believes that there will be no further changes with the existing cooling measures in the country.
During the periods mentioned above, the home prices went south by as much as 45 percent (during the Asian Financial Crisis) and another 20 percent during the bubble.