What Happens Next for the Property Market?
October sales of private property in Singapore picked up to 1058 units sold, a 16% jump from September figures despite the cooling measures that was cemented the previous month. The latest measures were a sellers’ stamp duty of 3% of the sale price if they sold their place within 3 years of buying them and a 10% instead of 5% cash downpayment for their second property, amongst other measures to slow down the property buying frenzy. Property pundits and agencies, worried that the government might stack up more cooling measures if demand spurts again, explained that the jump in demand was overrepresented by interest in Esparina Residences (425 units sold) and The Canopy (104 units sold). Executive condos were also incidentally back in demand.
What more can the government do to rein in property speculators? Hong Kong recently leashed its property market by introducing a seller stamp duty of 15% if the property is sold within 6 months of purchase, 10% if resold between 6 and 12 months and 5% if resold between 12 and 24 months. That is a real ball and chain to a runaway property market and Singapore might even get ideas from Hong Kong.
Nov 23, 2010
PROPERTY AND FINANCIAL MARKET
Steps to cool market, if…
THE Government is keeping a close watch on the property and financial markets as the buoyant Singapore economy – along with others in Asia – becomes a magnet for money in search of good returns.
If necessary, additional steps will be taken to keep property prices from soaring, said Finance Minister Tharman Shanmugaratnam yesterday.
He also assured Singaporeans that there was no need to worry about the negative impact of these capital inflows because Singapore’s financial markets can manage them efficiently.
In essence, the financial system here is able to take what is needed for domestic consumption and ‘recycle’ the excess liquidity back into foreign markets, he said.
Mr Tharman made these points in his reply to MPs worried about the impact of the new United States policy to spur its dormant economy. Those who raised their concern included Mr Liang Eng Hwa (Holland-Bukit Timah GRC) and Nominated MP Teo Siong Seng.
The US Federal Reserve said recently that it would inject US$600 billion (S$779 billion) into the economy by buying long-term US Treasury securities.