By Nikki De Guzman:
Aside from an expected surge in new completions, there are other headwinds that Singapore’s residential property market will face in the future, according to Nomura.
One of the concerns is higher property taxes due to changes in Budget 2013, like the removal of property tax refunds for vacant properties.
Continued tightening of the foreign labour market is also a concern as the minimum salary for foreign PMEs (professionals, managers and executives) to qualify for employment passes will likely be increased.
Moreover, the rental market is expected to face higher mortgage rates, including the potential change in monetary policy by October that could lead to a weaker Singapore dollar and higher benchmark interest rates.
Nikki De Guzman, Junior Reporter at PropertyGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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