Prices of residential property have plummeted considerably as a result of slow economic activity and the increasing interest rates. A JLL report indicates that this would be a perfect opportunity to get rid of cooling measures.
“Putting in place such cooling measures will ensure that the residential property market continues to experience good and steady growth,” the report further added.
The 4th quarter of 2016 saw prices in the home property ease even further, something that has taken place in 13 consecutive quarters before. Comparing to the previous 6 years, this was considered the lowest decline in terms of prices according to the URA.
Despite the grim outlook, there is something to smile about as the prime properties prices increased by 18% with the mass market properties experiencing a 10% growth. After the 2011 summit, residential properties especially those located in prestigious places experienced price improvement of between 25-30%.
“Additional buyer’s stamp duty should be removed or reduced for the citizens of Singapore. A tax based system should replace it when investing,” Chua Yang Liang said.
“This will go a very long way in helping to revitalizes the demand for the property market, encouraging new activities and maintaining prices at a stable level, “he further added.
If we are to keep the prices low and stable, then the TDSR should also be scrapped off alongside ABSD. This will go a long way in stabilizing the property market as it will allow actual prices to be set. As long as the purchasing power is higher compared to the market prices then it will become extremely difficult to eliminate the cooling measures.
Should the cooling measures continue to be effected, then citizens of Singapore will end up seeking for investment overseas something that is currently taking place.
Official data from the Singapore monetary authority states that by 2013, Singaporeans had invested a staggering $2 billion overseas, but the number reduced by $0.4 billion in 2015.
“It is a tough balancing act between portraying Singapore as an all investment friendly hub and as a country that is trying hard to prevent foreign capital from pushing prices to unaffordable level for the local people,” Liang said.
“If at all the cooling measures are removed, then it will go ahead in benefiting the real estate market,” he further added.
Read on more new condo launches by visiting Grandeur Park Residences and Park Place Residences; which will be launched within this year. For landed properties, there are some good buys at One Surin (with additional discount) or u may like to visit Watercove Ville.