This is the most comprehensive round of measures ever implemented by the government. The scope of the latest cooling measures are wide-reaching and it covers everything from public housing, private residential and for the first time industrial properties as well. Only commercial properties were left out.
For more details, go to MND's website or my website at the following link. Click Here
I can understand the rationale of the government's point of view in implementing these measures. This is to further prevent a speculative bubble from forming as prices of residential properties in all regions were rising on the whole. Even prices of industrial and commercial properties have gone up tremendously. This is probably due to unusually low interest rates that we are seeing now due to the effects of Quantitative Easing (QE) from the US. Too much hot money is flowing into Asia.
With so much liquidity flowing into Asia coupled with more property measures in HK and China to stop a bubble from forming, funds are flowing into Singapore at an astonishing rate.
Even with the implementation of Additional Buyer's stamp duties (ABSD) since the last round of cooling measures, I am still seeing a large volume of transactions at increasing prices, especially in mass market residential segment.
Only time will tell in the following 3-6 months if this latest round of cooling measures will work.
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