Several investment experts noted that Singapore’s property cooling measures could deter investors from residential property, turning them instead to stocks, according to The Straits Times.
DBS Group Research said that the latest property measure, which imposes an additional 10 percent stamp duty on foreigners buying private homes, could affect demand and investment strategies.
“Owner-occupier buyers are likely to hold back in anticipation of a dip in prices,” said the research house, which expects home prices to retrace by five percent this year.
Potential buyers are already adopting a wait-and-see attitude, suggesting that they may place their cash into stocks instead.
“Most people who have held back buying properties could invest in the stock market. There are lots of funds swirling around from one asset class into another,” said Colin Tan, Head of Research and Consultancy at Chesterton Suntec International.
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