Big Property Talks: The new cooling measures?

Cooling measures have been the talk of the town for months now, and continue to be the hot topic in Singapore’s property news. In fact, the recent increase in private property prices for the fourth consecutive quarter have sparked intense discussions, with the government stating that they are monitoring the real estate market closely.

In raising the entry point for people looking to purchase properties, cooling measures help to curb the surge in property prices, ensuring that property remains accessible and attainable for home buyers. We have broken down how possible cooling measures would affect you.

Potential increase in the additional buyer’s stamp duty (ABSD)

This possible cooling measure would discourage home buyers and investors from capitalising on the low bank interest rates and speculating in properties. While it can make it more difficult for home buyers and investors to get another property, it prevents property prices from becoming unaffordable.

Potential tightening of Loan-to-Value (LTV) Limit

The possible tightening of the Loan-to-Value (LTV) Limit would mean that property buyers will have to pay a greater sum for their down payment. However, it would ensure that they do not overborrow money for property purchases, beyond their financial means.

Possible extension of the minimum occupation period (MOP)

A possible extension of the minimum occupation period (MOP) is another possible cooling measure that may be implemented. This would prevent homeowners from speculating in HDB flats, and driving the prices of HDB resale flats, such that it would be harder for people to own a property.

Cooling measures are not ideal for homeowners and investors, but they do have their role to play. These measures prevent housing bubbles from forming and bursting, and help in keeping Singapore’s properties affordable for homeowners for a long time to come.

Considering entering the property market, but unsure how to navigate the potential cooling measures? We’re Pamela and Shirley from WonderHomes, and we’d love to help! We’ve helped many homeowners take advantage of the real estate market to grow their wealth, and we’d love to do the same for you. Check out our website at www.wonderhomesg.com, and drop us a call today!

Pamela Tan: 9457 6525

Shirley Wang: 9436 1909