It seems that property cooling measures by the government has improved tremendously. Transaction volume has dropped, new homes sales volume has also dropped and also the loan to value of ration have buyers has improved over the past couple of years.
Property Cooling Measures
Also this is a good sign that the property market has stabilized, the Singapore government remain cautious as property prices remain high. This is because the prices which the developer has bid for land has continued to remain high and this means that the developer will have to sell higher. A statistic was noted that a Serangoon plot of land whereby foreign developers continue to outbid local players which continued to be undeterred from the latest property cooling measures. As for prices of property, the pickup in prices is different across different market segments. For example, the outside central core region grew by 2.5 percent per quarter in 2013 wherelse there is a drop in prices in the core central region.
Results in Property Cooling Measures
There was also a drop in transaction volume. For the resale transactions, overall volume drop by half to about 2,100 units. As for new homes, the average transactions is about 900 a month. Analyst attributed that new homes might show more decline due to the TDSR framework. This is because new launches tend to be more extensive compared to the resale and hence many buyers might be restricted due to the mortgage loan restrictions introduced as part of the cooling measures.
Property Cooling measures show results
The increases in home loan amount also dropped significantly as buyers stand on the sidelines awaiting to see the market correction from the property cooling measures. Even though The Hillford is a new launch condo, it will show significant interest as the quantum is very low and this means buyers will have less problems on the loan restrictions