SINGAPORE PROPERTY MARKET SET TO HEAT UP
Sep 18, 2012
Singapore could introduce a new round of property measures to curb home prices following the US government’s third round of quantitative easing (QE3) that is expected to drive a fresh wave of capital into the city-state, according to The Business Times.
The decision by the Federal Reserve to inject US$40 billion into the US economy each month until sustained job growth is achieved may be seen as good news for the struggling global economy.
However, it has generated fears that the loose monetary conditions in the US could push funds into Asia in search of attractive yields, causing asset price inflation in the region.
The flood of foreign funds into Singapore’s property market could force the government to implement new measures or modify existing ones to ensure that a bubble doesn’t occur, noted consultants and economists.
“Clearly, Singapore is one of the destinations people look to as a safe haven... After the implementation of the ABSD, it seems the government will have to step it up again,” said Enrico Tanuwidjaja, an economist at RBS.
Economist Vishnu Varathan from Mizuho Corporate Bank explained that “if the Fed is going to pump in this amount of money, and if the Eurozone is not brewing out in a bad way, a lot of these funds will find their way to Asia as they last did”.
However, the Real Estate Developers’ Association of Singapore (REDAS) commented that “it is too early to ascertain the impact QE3 may have (if any) on the Singapore property market”.
The organisation feels that the additional buyer’s stamp duty (ABSD) has been effective in controlling asset inflation in the property market due to a sharp influx of foreign funds
Info courtesy - PropertyGuru