Singapore introduced a couple of regulations years ago to prevent the housing market from overheating. And now that it is already in its correction phase, the government is closely watching the market. This statement was actually from Minister Tharman Shanmugaratnam and was reported by Bloomberg recently.
During the event held last Friday for the Economic Society of Singapore, Minister Shanmugaratnam said that the cooling measures implemented by the government have already witnessed a big decline in the housing prices. This “sharp-up cycle” may last for the next five years or so. According to the official data released, the lowest figures for residential home sales were during the months of May to June. It plummeted to 42 percent in the period. The minister also mentioned that during the past 4 years, the cooling measures were able to weaken the real estate prices.
Right now, he is certain that it is already at the correction phase after soothing down the prices in the market. They still, however, are keeping a close watch just in case other factors may still affect this phase and may result to a worse real estate market fiasco.
Most of the residential units in Singapore already declined during the last seven quarters until the month June. This covers both landed (eg. Whitley Residences or Chartlon 18) and non-landed (eg. Adana @ Thomson, Botanique @ Bartley or Thomson Impressions) properties like. Minister Shanmugaratnam also believed that housing is not just essential for Singaporeans but it is also considered as a big part of making the country’s story as well. Since the market in Asia always goes through a cycle, he deemed that Singapore has to do something to prevent it from escalating in a short span of time.
Since 2009, the curbs have been implemented in Singapore which contested lower interest rates that attracted more foreign buyers to invest in the country. Also part of the regulation is the 60% debt repayment of the borrower and the increase in stamp duties for those who want to get residential units as well.