NEW PROPERTY MEASURES TAKING EFFECT
A recent survey of Propwise.sg subscribers showed that most of the 269 respondents (66 percent) believed that the fourth set of real estate cooling measures announced by the government are harsh enough to prevent the worsening or formation of a bubble in the Singapore property market.
Most of the respondents also believed that real estate prices will go down or stay flat this year, due to the measures. Many also expect that the new measures would seriously restrict the buying pool to new home buyers.
29 percent of the respondents who believed that prices would continue to increase this year cited the strong economy, low unemployment levels and low interest rate environment as reasons for the market’s continued strength, despite the measures.
The survey showed that about 31 percent of the respondents were deferring any further real estate investments due to the measures, indicating that the near term pool of buyers and strength of demand would weaken, going forward. Meanwhile, only seven percent of the respondents were planning to dispose of their property soon, before the market worsens. With sellers and buyers holding back, transaction volumes are expected to drop.
Some respondents also criticised the measures for preventing genuine upgraders and buyers from making purchases. The large amount of money needed to purchase a second property would pose a major problem to the average Singaporean.
Meanwhile, long-term investors have not been discouraged by the new measures, with 55 percent of the respondents keen on making a real estate investment if prices dropped. Some respondents said a 10 to 15 percent decline in prices would be enough to draw them back into the market.
“As long as the
economy is still doing well and the low interest rate environment is still there, property will continue to do well too. Unemployment is very low plus incremental wages are all feel good factors. Don’t forget, stock market will continue to do well this year, as Singapore Asia is still booming,” said one respondent.
Info courtesy- Property Guru