Should the Government Ease its Property Cooling Measures?

Experts expecting that the government will likely ease cooling measures by the end of 2016 or early 2017, despite the announced of lack of goodies in Budget 2016 for the property sector as well as increase in the foreign workers’ levy in the construction segment, according to Singapore Business Review report.

The consultancy believe the government will probably tweak the property curbs in case the home prices fall by 12% to 15%  from its peak.

The authorities may also study the measures when property developers can no longer manage the extension fees that they need to pay for not disposing residential units throughout the stipulated period under the Additional Buyer’s Stamp Duty (ABSD) and  Qualifying Certificate (QC) regulation.

Meanwhile, Kim Eng of Maybank considers the reason why the cooling measures are still implemented because home prices remain pricey. It also proves that government is contented with the record of low number of non-performing housing loans as well as high leverage mortgages.

However if the economy of Singapore results a curve for the worse and pulls down home prices, government may prioritize improving the curbs, Maybank Kim Eng noted.

Home buyers mays consider Singapore Property such as The Wisteria and Stars of Kovan in purchasing property with great investment potential.