REDAS calls for indepth review of property cooling measures
With fears that global economic woes could weaken the real estate market, several property developers in Singapore are calling for a review of the cooling measures.
"We are just signalling that in the coming months, it may be a good time to look at what is happening in the world and what is happening in the local market and then review some of these policies," said Wong Heang Fine, President of Real Estate Developers' Association of Singapore (REDAS) and Chief Executive of CapitaLand Residential Singapore.
He added that a timely review of the various market cooling measures would also help prevent artificially suppressed demand for private properties.
Lim Ee Seng, Group Chief Executive of Frasers Centrepoint, noted that the review should be conducted at the end of the year, as the measures would have been in effect for a year by then.
"The measures are working as reflected in the bids... The new launches are selling, but of course a lot slower than before. That shows that (buyers) are careful and are thinking more," he said.
The latest cooling measures announced in January include tighter financing policies and a sellers' stamp duty (SSD) of up to 16 percent.
Price gains of private homes have been moderating for seven straight quarters, climbing up just two percent in the three months to June.
While the erratic stock market and gloomy economic sentiment swings, property developers are carefully watching the market for signs of a slowdown.
"The falling stock markets have unnerved people. The negative news coming out of the US and Europe and talk of a recession will also affect buying sentiment and developers will be concerned, especially if they have a lot of inventory to clear," said Colin Tan, Research Head at Chesterton Suntec International.
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