The latest property measures implemented by the government have begun to effectively stabilise the market, according to the Real Estate Developers Association of Singapore (REDAS).
“There’s a drop in volume but I think that’s expected, because of hesitation and uncertainty,” said Mr. Lim Ee Seng, first Vice President of REDAS, in an interview with Channel NewsAsia.
He said that properties launched after the cooling measures still saw good take-up rates, which clearly demonstrated that many people are still in need of properties.
“So as we eagerly await good news from the upcoming Budget and with the property market stabilising from the latest round of cooling measures by the government, I hope any further measures by the Singapore government would only be made after considering all options,” noted REDAS President Wong Heang Fine.
According to some analysts, transaction volumes have declined by 30 percent but REDAS was still optimistic and expected that property investment could range between S$12 million and S$14 million this year.
However, some analysts forecasted that the amount of foreign investment in Singapore will decline.
“I can foresee that with the introduction of higher interest rates in China, the liquidity in Singapore is going to be affected and I believe not as much funds will flow into Singapore as compared with the past,” said Eric Tan, Chief Executive at property consultancy firm GSK Global.