Analysts expect the government to review the property cooling measures this year, media reports said.
This is because the government’s four key metrics – speculation, home prices, foreign buying and interest rates have begun to move in desired directions, shared Maybank Kim Eng analyst Derrick Heng.
At the same time, HSBC economist Joseph Incalcaterra noted that the government’s macroprudential measures such as the TDSR have been effective in curbing household debt accumulation.
“The MAS is likely to maintain its macroprudential policy to assist in the deleveraging of households; however, it is possible that they tweak some measures in 2H 2015,” he added.
In a Q4 2014 consumer sentiment survey published by PropertyGuru which polled 940 Singaporeans and permanent residents, two in three people wanted the government to maintain the cooling measures, but hoped to see some curbs relaxed.
The top three measures they’d like loosened are:
– Additional Buyer’s Stamp Duty (ABSD) on a second or subsequent property;
– Total Debt Servicing Ratio (TDSR) framework;
– Mortgage Servicing Ratio (MSR) on HDB loans.
Romesh Navaratnarajah, Singapore Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
