“I don’t think the cycle is over,” Shanmugaratnam said today at a conference hosted by DBS Group Holdings in Singapore. “I think further correction would not be unexpected.”
The Singapore government has taken steps since 2009 to curb speculation in the property market. An index tracking private residential prices in Singapore fell 1.1% to 209.3 points in the three months ended June 30, following a 1.3% decline in the previous three-month period, according to preliminary data released by the Urban Redevelopment Authority on July 1.
Among measures introduced to cool the property market, lenders must consider a borrower’s debt when granting mortgages, the Monetary Authority of Singapore said in June, 2013. Home loans should not lead to a borrower’s total debt-servicing ratio rising above 60% of his or her income, it said.
- As the speculators running away from property market, the market is now a buyer market where it would cater to those who really need a home in Singapore. We have seen a trend where developers have lowered down the selling price for relaunched properties as well as increase in the auction cases for luxury property market. Nonetheless, as more buyers expect a decrease in property market, it would deter the market from picking up so soon.
- Property developers will be more cautious in tendering their bids for the land bank released by the government. Some developers are now focusing on passive income (e.g. rental income and other investment income etc) to support their daily operational cash flow while putting on hold any large scale new launch in Singapore property market.
- So where would the excess cash go to if lesser investors in real estate market? It is still very silly if you keep your excess cash in your saving accounts.
- And what is the impact to Iskandar Malaysia property market if Singapore property market continues its downtrend?