Home builders are optimistic that the government will soon ease Singapore’s hard-hitting property cooling measures. But experts from DBS reckon the authorities will likely tweak such policies at the end of 2015, media reports said.
This is because it is still too early to revise the curbs as home prices remain relatively high. Prices have only fallen by six percent after peaking in 2013, and DBS feels that such a tiny drop would not warrant any early government intervention.
“We believe that any policy actions will likely come towards the end of 2015 and targeted towards the mass market where the pressure is coming from increased supply completion,” the report noted.
It added that the authorities would likely start reversing the measures later in the year as interest rates are expected to increase significantly to about 1.5 to 2.0 percent.
Furthermore, nearly 50,900 new housing units are forecast to come onstream, which will push the residential market towards a more balanced state driven by supply and demand.
“We believe that tweaking any stamp duties especially in the high-end market in response to dismal sale volume at this time will likely be seen as insensitive towards the mass market, in light of the upcoming general elections within 2015-2016,” shared DBS.
Romesh Navaratnarajah, Singapore Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
