Property cooling measures might finally be lifted in 2Q16: report

Prices could decline by up to 15% by then.

The long-awaited relaxation of Singapore’s property cooling measures might finally happen in the second quarter of 2016, according to a report by UOB Kay Hian.

UOB Kay Hian expects physical property prices to have dropped by as much as 15% by then, which in turn could urge policymakers to lift certain measures.

“This could be a catalyst for selected cooling measures, such as additional buyer's stamp duty (ABSD), to be reviewed in 2H16. Having said that, we think some measures, such as total debt service ratio (TDSR), would be a permanent measure, which is a prudent move,” said UOB Kay Hian.

UOB Kay Hian favors developers with significant exposure to the Singapore residential segment, such as City Developments and Wing Tai.