Analysts believe the property cooling measures are unlikely to be eased this year even after the ruling People’s Action Party (PAP) romped to a strong election victory, reported Singapore Business Review citing RHB Research.
While the strong mandate received by the PAP provides it with more room to ease the measures, the consultancy does not expect policymakers to relax any curbs this year as property prices remain relatively high.
“Despite expectations building-up for more pro-growth policies, we do not think any easing (particularly property) will be done this year, as the property price index (PPI) is still only -6.7 percent from its peak in Q3 2013 and -3.7 percent year-on-year. There may also be push-back from the populace if asset prices spike right after elections,” it said in a report.
RHB Research expects the new cabinet to take a measured, data-dependent and gradual approach in loosening the measures.
“We think the probability of lifting some of the ABSD cooling measures next year when islandwide property prices have fallen 12-15 percent certainly looks more palatable at this stage,” the report added.
Romesh Navaratnarajah, Singapore Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
