Despite the market enduring a 41-year low point, Singapore’s National Development Minister reiterates his stance on the need for cooling measures.
- Singapore property market cooling measures are unlikely to be eased anytime soon
- The country’s National Development Minister explained that the government looks at “the broader considerations” rather than whether prices fall by a certain amount
- Investors have now seen values in the Singapore market fall for 12 consecutive quarters
The property cooling measures that are contributing to the downward value of Singapore real estate are here to stay, the country’s National Development Minister has reaffirmed
Despite the market’s current losing streak being the longest since 1975, Lawrence Wong has reiterated his stance that he has no plans to ease them in the short or mid term.
With fears that the country’s real estate sector could reach a bubble, the government moved to ease rapid appreciation by introducing measures such as the Additional Buyers’ Stamp Duty policy which aims to reduce interest for local property from overseas buyers.
From a peak in 2013, average values have now declined by just 10.9% in three years. But speaking to Straits Times, Mr Wong was quick to outline that the government doesn’t simply focus on price fluctuations.
“It’s not as though there is a price point for which we say, ‘(It) dropped by this per cent already, therefore I can change the measures’…”, explained Mr Wong. “We look at the broader considerations.”
He also pointed to volatility in a number of global financial markets for his unwavering support of the measures, before adding that “we don’t want to be a nation of property speculators”.
Many investors disappointed with Singapore property’s ongoing performance have begun to look for alternative investments. Since the vote for Brexit, UK property has become significantly more affordable for those dealing in dollar-pegged currencies, with many identifying the long-term benefits of moving during this currency window of opportunity.