{"id":101328,"date":"2018-11-16T11:22:57","date_gmt":"2018-11-16T04:22:57","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/property-cooling-measures-averted-a-10-15-growth-in-home-prices\/"},"modified":"2018-11-16T12:06:15","modified_gmt":"2018-11-16T05:06:15","slug":"property-cooling-measures-averted-a-10-15-growth-in-home-prices","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/property-cooling-measures-averted-a-10-15-growth-in-home-prices\/","title":{"rendered":"Property cooling measures averted a 10-15% growth in home prices"},"content":{"rendered":"


\nNational Development Minister Lawrence Wong clarified that the government wants to stabilise the property market so that prices may move broadly in line with income growth.
\nWhile developers may want a \u201ccomplete laissez faire situation\u201d of allowing \u201cthe market to run its own course\u201d, the government cannot take a hands-off attitude on the property cycle and allow property bubbles to form, said National Development Minister Lawrence Wong.
\n\u201cLet me be very clear. The government cannot and will not take a hands-off attitude to the property cycle. So there should not be any surprise when we intervene in the market,\u201d he said at the anniversary dinner of the Real Estate Developers\u2019 Association of Singapore (REDAS).
\nMore: No Rationale For New Property Cooling Measures, Says REDAS
\nIn explaining the rationale of the July cooling measures, Wong said government intervention is necessary to prevent bubbles from forming and to achieve a stable property market.
\nHe noted that property prices would have soared by up to 10 to 15 percent had the government not introduced the latest measures, reported Today Online.
\nAnd while prices had not come down with the measures, they have remained \u201cflattish\u201d or increased only at a very gradual rate. Overall transaction volumes and land sales have also slowed down, he said.
\n\u201c(More) importantly, the measures have encouraged en bloc sellers and developers to be more realistic in their price expectations.\u201d
\nHowever, Wong clarified that it is not the government\u2019s aim to bring property prices down, but to steady the cycle and stabilise the market in order that prices may move broadly in line with income growth.
\n\u201cOur own experience has shown that if corrective actions are not taken to prevent a bubble from forming, the costs will eventually be larger and more painful, and ultimately this will harm the vast majority of genuine home buyers and owners.\u201d
\nSpeaking at the same event, REDAS\u2019 president Augustine Tan said the cooling measures has led to a state of uncertainty within the property market \u2013 with sales momentum at new private property launches slowing down, while supply of units in the market remains high.
\nTan believes there would be 44,667 private residential units coming from the unsold stock and the potential new supply from collective sale sites and government land sales.
\n\u201cBarring tighter regulations, it will take up to five years for these units to be fully absorbed\u201d, he said, while noting that demand will likely remain subdued for the rest of the year on the back of the cooling measures.
\nTan also underscored the challenges facing developers \u2013 development cost has become higher due to the new five percent non-remissible Additional Buyer\u2019s Stamp Duty (ABSD) payable whenever they acquire a land for residential development.
\nThere is also the risk of paying the 25 percent remissible ABSD with interest, if developers fail to move all units at a residential project within five years from acquiring the site.
\nWith this, Wong said that while developers believe that the market is very subdued with room for prices to grow, buyers think that prices are too high.
\n\u201cReal estate and property is something that Singaporeans care deeply about. A residential property is a home and also an asset \u2014 probably the single largest asset that many people own. So, understandably, there will always be differing views when it comes to the property market\u2026 The government is in the position of having to take the responsibility and weigh these different views carefully,\u201d he said.
\nAlthough Wong acknowledged that developers have short-term commercial goals, he hoped they would understand that actions taken by the government is the \u201cmore responsible approach\u201d.
\nHome buyers looking for\u00a0Singapore Properties\u00a0may like to visit our\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\n\u00a0
\nRomesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email\u00a0romesh@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Property cooling measures averted a 10-15% growth in home prices<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

National Development Minister Lawrence Wong clarified that the government wants to stabilise the property market...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-101328","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-qmk","jetpack-related-posts":[{"id":93453,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/no-rationale-for-new-property-cooling-measures-says-redas\/","url_meta":{"origin":101328,"position":0},"title":"No rationale for new property cooling measures, says REDAS","date":"July 9, 2018","format":false,"excerpt":"\r The Real Estate Developers\u2019 Association of Singapore (REDAS) sees no rationale in imposing new property cooling measures considering that the Singapore property market is still in the \u201cearly stages of a recovery and the recovery is in line with economic fundamentals\u201d, reported Channel News Asia. Among the new curbs\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":119988,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/ministerial-comments-rising-prices-spark-talk-of-additional-property-cooling-measures\/","url_meta":{"origin":101328,"position":1},"title":"Ministerial comments, rising prices spark talk of additional property cooling measures","date":"January 20, 2021","format":false,"excerpt":"\r Ministerial comments, rising prices spark talk of additional property cooling measuresMinister Desmond Lee\u2019s urge for Singaporeans to exercise prudence when acquiring property\u00a0and the recent rise in\u00a0private home prices have experts\u00a0believing them as signals for another round of cooling measures. Analysts consider recent ministerial remarks on the property market as\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/01\/Residential-apartments-in-Singapore-v2.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":98205,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/developers-work-harder-and-take-more-prudent-approach-amidst-property-curbs\/","url_meta":{"origin":101328,"position":2},"title":"Developers work harder and take more prudent approach amidst property curbs","date":"September 20, 2018","format":false,"excerpt":"\r It could take several years for the market to absorb the pipeline supply of private homes. The government\u2019s latest property cooling measures made it harder for developers to offload the nearly 46,000 private residential units expected to come onstream in 2019 and 2020, said Augustine Tan, president of the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":103066,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/redas-names-cdl-group-general-manager-as-new-president\/","url_meta":{"origin":101328,"position":3},"title":"REDAS names CDL group general manager as new president","date":"January 18, 2019","format":false,"excerpt":"\r Augustine Tan will be stepping down as president of REDAS. (Photo: Far East Organization) The Real Estate Developers\u2019 Association of Singapore (REDAS) has named Chia Ngiang Hong, group general manager at City Developments Limited (CDL), as its new president for the 2019\/2020 term, reported the Business Times. He will\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":94189,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/new-property-curbs-to-erode-market-confidence-says-redas\/","url_meta":{"origin":101328,"position":4},"title":"New property curbs to erode market confidence, says REDAS","date":"July 18, 2018","format":false,"excerpt":"\r The new property curbs are a \u201cbig setback\u201d for Singapore\u2019s property sector, according to the Real Estate Developers\u2019 Association of Singapore (REDAS) in a report by the Business Times. These new cooling measures will impact the confidence of property developers, investors and home buyers, said REDAS President Augustine Tan.\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":107633,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/property-cooling-measures-achieved-stabilisation-goals-wong\/","url_meta":{"origin":101328,"position":5},"title":"Property cooling measures achieved stabilisation goals, Wong","date":"May 31, 2019","format":false,"excerpt":"\r The property cooling measures helped stabilise the property cycle, according to the Minister for National Development.\u00a0 While Singapore welcomes investors, the city-state is no place speculators. This comes as the property cooling measures rolled out by the government in July 2018 achieved what it had set out to do\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/101328"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=101328"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/101328\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=101328"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=101328"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=101328"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}