{"id":119988,"date":"2021-01-20T01:33:41","date_gmt":"2021-01-19T18:33:41","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/ministerial-comments-rising-prices-spark-talk-of-additional-property-cooling-measures\/"},"modified":"2021-02-02T17:52:18","modified_gmt":"2021-02-02T10:52:18","slug":"ministerial-comments-rising-prices-spark-talk-of-additional-property-cooling-measures","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/ministerial-comments-rising-prices-spark-talk-of-additional-property-cooling-measures\/","title":{"rendered":"Ministerial comments, rising prices spark talk of additional property cooling measures"},"content":{"rendered":"


\nMinisterial 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.
\nAnalysts consider recent ministerial remarks on the property market as a signal of another round of cooling measures.
\nDeputy Prime Minister and Finance Minister Heng Swee Keat on Monday (18 January) said the government will pay \u201cclose attention\u201d to the local property market to ensure it remains stable, reported The Straits Times (ST).
\n\u201cWe do not want to see the property market run ahead of the underlying economic conditions\u201d, he added, noting the uncertain economic outlook.
\nHeng made the comments at the anniversary celebration of the Real Estate Developers\u2019 Association of Singapore (REDAS).
\nMeanwhile, National Development Minister Desmond Lee had earlier said the property market is being monitored \u201cvery closely\u201d by the government.
\nRecommended article:\u00a0Why More Homeowners Are Refinancing Now, Especially Thanks To COVID-19 Property Reliefs
\nSpeaking at a BCA-REDAS seminar, Lee urged households to exercise caution when acquiring property and developers to be prudent in their land bidding, considering the uncertain economic outlook.
\nThese remarks were seen as a signal for additional property cooling measures by analysts at Jefferies Financial Group and DBS Group Research, said ST.
\nMoreover, flash estimates from the URA also showed that private home prices rose 2.1% in the fourth quarter of 2020, or the highest quarterly increase since Q2 2018 when prices climbed 3.4%.
\nNormanton Park\u2019s strong sales were also cited as another factor. The biggest and first new launch for 2021, the development shifted almost one-third of its 1,862 units.
\nDBS analysts believe the hike in private home prices were fuelled by low interest rates, the return of upgraders and former en bloc sellers to the market, and improved buyer confidence as many Singaporeans remained employed thanks to the government\u2019s various job schemes.
\nRecommended article:\u00a0En Bloc to Make a Comeback in 2021: A Look at 74 Past Unsuccessful En Bloc Sales
\n\u201cThis trend has surprised many and a further acceleration in price trends in 2021 may put the property market in frothy territory,\u201d warned DBS analysts as quoted by ST.
\nWith this, DBS analysts suggested tightening mortgage terms, adjusting up the average minimum size for homes at new developments and further tweaking Additional Buyer Stamp Duties\u00a0(ABSD) for foreigners and investors \u201cas it has been shown to slow the pace of price increases\u201d.
\nSome analysts, however, believe that implementing more cooling measures at this point would be premature, said ST.
\nThe July 2018 round of property cooling measures were precipitated by four consecutive quarters of price hikes totalling 9.1%, higher than expected Government Land Sales (GLS) bids and record-high en bloc sale bids.
\nComparatively, private home prices rose 2.2% in 2020. \u201cGLS land bids were in line or lower than expected, although the number of bids is increasing. And collective sales are still nascent, with just four smallish ones in 2020,\u201d said Tricia Song, Research Head for Singapore at Colliers International, as quoted by ST.
\nWith this, Song expects the government to wait out \u201ca few quarters and monitor prices\u201d.
\n\u201cIn the meantime, it is sending out messages that buyers should be prudent and that prices should not continue to move up significantly before an actual economic pickup,\u201d she said.
\nSuggested read:\u00a0Is It Time for Singapore to Remove ABSD?
\nWong Xian Yang, Associate Director of Research for Singapore and South-east Asia at Cushman & Wakefield, noted that most of the 2.2% price growth in 2020 came from Q4 2020, which posted a 2.1% increase.
\n\u201cSo, it is still too early to assess if price growth is on an unsustainable trajectory. The current market could be propped up due to government stimulus, and when that stimulus winds down, it is uncertain if current demand can be sustained,\u201d he said as quoted by ST.
\n\u201cTo ensure that home purchases are prudent, the government can introduce further loan curbs for both local and foreign investors\u2026 I don\u2019t think additional buyer\u2019s stamp duty (ABSD) should be increased further given that different sectors have performed differently.\u201d
\nHe pointed that prices within the Core Central Region fell 0.2% in 2020, while the Rest of Central Region and Outside Central Region saw prices increase 5.1% and 3.1%, respectively.
\n\u201cIncreasing ABSD may result in more divergent performance across sectors,\u201d added Wong.
\nLooking for a property in Singapore? Visit PropertyGuru\u2019s Listings, Project Reviews and Guides.
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Ministerial comments, rising prices spark talk of additional property cooling measures<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Ministerial comments, rising prices spark talk of additional property cooling measuresMinister Desmond Lee\u2019s urge for...<\/p>\n","protected":false},"author":1,"featured_media":119989,"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-119988","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-news"],"jetpack_featured_media_url":"https:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/01\/Residential-apartments-in-Singapore-v2.jpg?fit=820%2C410&ssl=1","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-vdi","jetpack-related-posts":[{"id":120473,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/low-interest-rates-pose-risks-to-property-market-warns-heng\/","url_meta":{"origin":119988,"position":0},"title":"Low interest rates pose risks to property market, warns Heng","date":"February 18, 2021","format":false,"excerpt":"\r Low interest rates pose risks to property market, warns HengThis comes as Singapore\u2019s housing market registered a rapid recovery after the COVID-19 pandemic brought the economy to its worst recession, sparking speculation that the government would once again intervene and roll-out new\u00a0cooling measures. 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