Despite witnessing a decline in sales volumes and property prices for six months, cooling measures, particularly loan curbs, are expected to stay for a while, said experts.
They noted that there is not much hope the measures will be relaxed in next month’s Budget considering prices in some segments and household debt remains high.
The only concession would be a slight easing in stamp duties although others believe that certain measures ought to be rolled back.
"Transactions have collapsed and property developers are stuck. Smaller developers of higher-end homes may even go bust if some of these measures are prolonged," noted Chua Hak Bin, Economist at Bank of America Merrill Lynch.
"Reducing buyer stamp duties or exempting duties for prices above certain thresholds, say S$1 million, may help ease the pressure."
Meanwhile, Donald Han, Managing Director at Chesterton Singapore, believes that replacing the seller’s stamp duty (SSD) with a capital gains tax will be more equitable and "can send the appropriate signal out to foreign investors that they are welcome but Singapore wants a stable, long-term and productive investment market."
Suntec Real Estate Consultants’ head of research and consultancy Colin Tan wants the "authorities to grant genuine upgraders a grace period – without the administrative hassle to pay first and claim back later – with regard to ABSD (additional buyer’s stamp duty)."
However, experts reckon that it is unlikely, or even dangerous, for the government to repeal cooling measures now, considering that their effects have only started to manifest.
"While I think it is in no one’s interest to see a sharp property correction, it is also dangerous to foster a mindset that the Government is supportive of price increases and very sensitive to price correction," said Standard Chartered economist Edward Lee.
Barring any "unsettling" market corrections in the next two years, KPMG Singapore principal tax consultant Leung Yew Kwong does not expect any major unravelling of the cooling measures.
Christopher Chitty, Senior Content Producer at PropertyGuru edited this story. To contact him about this or other stories, email christopher@propertyguru.com.sg
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