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26-02-14, 20:51
http://www.straitstimes.com/archive/saturday/premium/top-the-news/story/property-cooling-measures-stay-now-20140222
NO SINGAPOREAN LEFT BEHIND: HELP FOR FIRMS
Property cooling measures to stay for now
Published on Feb 22, 2014
By Melissa Tan
PROPERTY market cooling measures are staying put for now despite calls by industry players for some relief amid softening prices and sales volumes.
"Given the run-up in prices in the last four years, it is too early to start relaxing our measures," Deputy Prime Minister Tharman Shanmugaratnam said.
He added that the measures were imposed "to prevent property prices from getting too far out of line with incomes".
"We are not engineering a hard landing," he said.
"But neither are we able to eliminate cycles in the property market, with upswings in prices in some years followed by corrections."
Developers and analysts said they were disappointed.
However, they noted that buyers who were sitting on the fence awaiting a possible Budget announcement might now jump back into the market.
Mr Tharman said the property curbs were working, with both Housing Board resale and private home prices "stabilising".
The Government will continue to monitor the market and adjust measures "when necessary".
The housing market slowed on all fronts late last year.
HDB resale prices slid last year from 2012, posting their first annual decline since 2005.
Private home prices also fell in the final quarter last year compared with the previous three months - the first such decline in nearly two years. Even so, they are still relatively elevated, at 61 per cent above the trough in the second quarter of 2009.
Mr Lim Yew Soon, managing director of boutique developer EL Development, said yesterday that although most developers had hoped for an easing of the additional buyer's stamp duty, it was "also good that he (Mr Tharman) gave a clear signal".
"There were rumours that there would be tweaks. Now that he has taken a firm position, it can put buyers' minds at rest and, if they want to buy now, they don't have to wait."
Chesterton Singapore managing director Donald Han said it would probably take several consecutive quarters of price drops for the Government to consider loosening curbs.
"It is probably too early because we're now at the beginning of a correction," he said. "While the industry had been hoping for some measures to be relaxed, it is also realistic."
Several property industry players have been suggesting that the time was ripe for some curbs to be eased.
City Developments executive chairman Kwek Leng Beng said earlier this month that the Government could consider reviewing some measures in the light of concern over the global economy.
There are also worries about oversupply. From this year to 2016, the private home segment will add another 77,000 units.
[email protected]
NO SINGAPOREAN LEFT BEHIND: HELP FOR FIRMS
Property cooling measures to stay for now
Published on Feb 22, 2014
By Melissa Tan
PROPERTY market cooling measures are staying put for now despite calls by industry players for some relief amid softening prices and sales volumes.
"Given the run-up in prices in the last four years, it is too early to start relaxing our measures," Deputy Prime Minister Tharman Shanmugaratnam said.
He added that the measures were imposed "to prevent property prices from getting too far out of line with incomes".
"We are not engineering a hard landing," he said.
"But neither are we able to eliminate cycles in the property market, with upswings in prices in some years followed by corrections."
Developers and analysts said they were disappointed.
However, they noted that buyers who were sitting on the fence awaiting a possible Budget announcement might now jump back into the market.
Mr Tharman said the property curbs were working, with both Housing Board resale and private home prices "stabilising".
The Government will continue to monitor the market and adjust measures "when necessary".
The housing market slowed on all fronts late last year.
HDB resale prices slid last year from 2012, posting their first annual decline since 2005.
Private home prices also fell in the final quarter last year compared with the previous three months - the first such decline in nearly two years. Even so, they are still relatively elevated, at 61 per cent above the trough in the second quarter of 2009.
Mr Lim Yew Soon, managing director of boutique developer EL Development, said yesterday that although most developers had hoped for an easing of the additional buyer's stamp duty, it was "also good that he (Mr Tharman) gave a clear signal".
"There were rumours that there would be tweaks. Now that he has taken a firm position, it can put buyers' minds at rest and, if they want to buy now, they don't have to wait."
Chesterton Singapore managing director Donald Han said it would probably take several consecutive quarters of price drops for the Government to consider loosening curbs.
"It is probably too early because we're now at the beginning of a correction," he said. "While the industry had been hoping for some measures to be relaxed, it is also realistic."
Several property industry players have been suggesting that the time was ripe for some curbs to be eased.
City Developments executive chairman Kwek Leng Beng said earlier this month that the Government could consider reviewing some measures in the light of concern over the global economy.
There are also worries about oversupply. From this year to 2016, the private home segment will add another 77,000 units.
[email protected]