, Singapore

Will property cooling measures ever be eased?

All is not yet lost, analysts say.

Developers were hit with a double whammy in Budget 2016—not only did the government decree that cooling measures are here to stay, but policymakers also refrained from deferring foreign worker levies in the construction sector.

While these actions will further cool demand in a market which has already seen over two years of consecutive price declines, analysts note that a policy easing still looms in the foreseeable future.

“We expect the government to continue monitoring the residential market, and relaxation is likely only nearer end-2016,” RHB Research said in a report.

RHB said that an easing will materialise after property prices have corrected by 12-15% from its peak and Qualifying Certificate extension charges and ABSD remission start to bite more developers.

Meanwhile, Maybank Kim Eng noted that the government’s decision to keep cooling measures in place hints that policymakers believe that prices are still elevated. It also indicates that regulators are comfortable with the quality of banks’ mortgage book.

“Further downside should be expected before any lifting is made. This is in line with our view that there is not enough pain in the market yet and cooling measures may only be reviewed in early 2017,” said Maybank Kim Eng’s report.

“Also, if the economy deteriorates more than expected and takes prices down with it, we see lifting of the measures as a first in line potential policy stimulus too,” the report added.

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Get Singapore Business Review in your inbox
It will apply to vaccines administered in Singapore under SAR.
Its startups may now receive up to US$250,000 investment.
The Lion City also has the highest insurance penetration amongst the six markets at 5.9%.
The bank will anchor up to US$200m or 40% of the fund size, whichever is lower.
A wholly-owned subsidiary of WeWork is occupying 56,977 sq ft of Prime’s California property.
The jobless rate during the quarter also eased, but remained elevated.
The notes are expected to be issued on June 23rd.
Its IP coverage for vaccine complications now include those approved by WHO under EUL.
The Lion City ranks 13th most expensive location for expatriates in the world.
Due to construction delays, buyers may prefer "ready-to-move-in" properties.
Wilmar International saw the sharpest decline during Thursday's trading, with a 1.52% drop.
Its skilled talent pool, logistical network, government funding and physical infrastructure helped it maintain its competitive position as a biomedical hub.
Singapore millennials were found to be more stressed than the global average.
Almost four-fifths (76%) of Singaporean consumers are not satisfied with generic credit offers from their banks, with 24% willing to offer more information in exchange for better rates or lower fees, a FICO study revealed.