On July 6th, 2018 new property cooling measures were introduced by the government of Singapore as a move to regulate residential property prices.
This came as a shock to many people since the report didn’t give much time to adjust to the changes. In any case, the announcement saw developers in a frenzy at the last-minute struggling to launch sales before the measures could take effect.
According to Augustine Tan, the president of Redas, the cooling measures will reduce residential property demand from investors and foreigners since the cost of home ownership had risen.
However, the government of Singapore put the rules in place to keep prices within the economic range of the country.
The property euphoria that hit the country saw a 9% increase in private property prices. In light of this, the government raised the Additional Buyer’s Stamp Duty (ABSD) and tightened the Loan-To-Value limits (LTV) on residential property purchases.
In the last two years, en bloc sales have dominated the market which saw the rise of residential redevelopment site prices, enriched developers and owners and also caused friction among many.
The property market became dramatically overheated with collective sales.
As it stands, many people are wondering who stands to benefit from the new cooling measures and who stands to lose.
The ABSD affects some categories of residential redevelopment purchases. On the other hand, buyers and sellers are engaged in understanding what the cooling measures mean for their loans and investments.