Move To Curb Speculation in Property Market
Following from the Rally Speech, the government announced measures to cool down the overheated property market.
Key is the additional restrictions on second homes.
- Buyers of second homes have to cough up 70% of the housing loan instead of the current 80%.
- There is additional money curbs of more stamp duties for sellers/speculators/investors (depending on which you prefer) who sell within 3 years. The time limit used to be within 1 year, so it is more restrictive now.
At the same time, the Prime Minister announced that it will build 22,000 homes next year. Up from the original 16,000 slated. This is a 30% increase in supply, so it should see the property price increase moderate and slow the rate of increase.
Maybe the Singapore general election is just around the corner and this will appease the new homeowners who are paying huge sums for their first home?
Sources:
1. Singapore acts to cool property market, following HK
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August 31, 2010 at 12:18 AM
Frankly, I think the carrot which PM Lee dangled was in the form of S$9,000 for NS Men to show "appreciation" for serving the country. That got many of my guy friends talking; much more than the property measures which most ignored!
So the Govt has succeeded yet again - giving out money (not even in cash but through CPF) to win the support of the populace. Good or bad? You decide....
Cheers
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