Singapore’s cooling measures have been curbed.
Singapore has long been a favoured investment location in the region. It’s robust economy and its status as a financial hub are reasons for this. However the market has been fairly slow of late due to the cooling measures placed in 2009 implemented in a bid to prevent speculative purchasing.
However, the Singapore government are relaxing the cooling measures placed on residential properties. A response to slow demand and stagnating values. Welcome news for investors and developers who have been calling on the government to reassess the measures. This included pleas from the Real Estate Developer’s Association of Singapore who made the request ahead of the country’s budget on 20 February.
The cooling measures put in place included increased stamp duty rates and making it harder for borrowers to obtain mortgages. This included not permitting investors to sell their properties within four years of when they purchased it. This has now been reduced to three years. For stamp duty, the rates have been reduced by four percent across the board.
Lending conditions will also be eased. Currently investors can borrow 60 percent of their monthly income. However, this will now not apply for those with a loan-to-value ration less than 50 percent. The aim is give borrowers more flexibility with their money to aid for their retirement.
Share prices have risen in response to the news. Developers CapitaLand and City Developments Ltd enjoyed an increase of 4.8 and 7.4 percent. A flurry of activity is expected as the market receives a much needed boost. This is reinforced by the country’s power house opposition Hong Kong is experiencing spiralling upwards prices meaning more attention is on Singapore than ever before.
