Time to relax property measures?

The Business Times
Published: 20th Jan 2014

 
How effective have the various property measures (since 2009) been in cooling market? is it time to start unwinding some of the measures, and if so, which ones, when and why?

OF the seven rounds of cooling measures that have been implemented so far, i believe the TDSR may have been the most effective in cooling the market. However, judging from the past few quarters, it seems that prices have only moderated marginally while sales volume has dropped more substantially. Cash-over-valuation (COV) has declined to close to zero in some areas. there is also talk that prices will resume their upward trend towards the end of this year.

Overall, the market is still digesting the effects of the latest round of measures and the next two quarters will give us a clearer picture of where the market is headed. All things considered, prices are still relatively high compared with few years ago before they began soaring.

I feel that the price levels are still too high for young families starting out. thus, assuming that economic growth remains at status quo. I don’t think it is time to start unwinding some of the measures just yet. Let’s wait for the figures for the current and next quarter to come in and the assess the situation again.

Ronald Lee
Managing Director
PrimeStaff Management Services Pte Ltd

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