Singapore: Angeline Tan, Real Estate Developers’ Association of Singapore (REDAS) president has cautioned about a collapse in housing market with a deterioration in economic sentiment, decline in sales etc. Property cooling measures has to be revise so as to reduce risk for home owners and developers from uncertain wordwide economic conditions precipitating a downward spiral of property prices.
Minister Khaw Boon Wan: “Collapse of housing market benefit no one”. “The cooling measure in the property market in the current intensity and current measure will increase the risk to the economy and real estate market, added Mr Tan, Executive Director Far East Organization. In current property market, sellers and developers property prices are much controlled due to market sentiment, TDSR and cooling measure. Buyers on the other hand has to pay hefty stamp duty or down payment if they are foreigner or 2nd or more properties. Therefore, current property market benefits no one, that is except government from their collection in Seller Stamp Duty and Additional buyer stamp duty (ABSD). Just the ABSD alone hit billions for Singapore government.
The property cooling measures were as property prices and transactions hit record high. However for 2015, overseall transaction has decline by more than 80% since its peak in early 2013. Property market has decline for seventh consecutive quarter since 2013. This is the longest losing streak since 2013 especially after the latest cooling measures Total Debt Servicing Ration (TDSR) is implemented. Its a totally different picture since its peak in 2013.