Singapore may need more ‘aggressive’ property cooling measures: Barclays

Authorities have responded three times in just less than 3 years to cool the exclusive market, most recently by doubling stamp obligation for many immigrants to 60% in 2023, amongst the highest possible rates globally.

Greater than 2,400 new exclusive properties were sold previous month, according to initial information from the Urban Redevelopment Authority, putting sales on rate for their ideal month in beyond a decade.

Singapore authorities may really need to include more “aggressive” realty limitations down the road if they neglect to tackle a homebuying craze by early next year, Barclays warned.

Singapore’s central bank said last week that the easing of domestic lending rates has improved sentiment in the private property market. The authorities “will stay watchful to market developments”, it stated in an annual financial stability review.

” Real estate investors are nonetheless likely to retroactively interpret the news as a sign that the authorities is relieving on the controls,” its analysts wrote. “Some market gamers might choose to see what they intend to notice in order to collect as several arguments as they can to additionally fuel the excitement if investor belief improves.”

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A recent renewal in the exclusive marketplace driven by a blockbuster November has actually “raised the possibility of a resurgence in property rates”, and a rerun of 2017-2019 when customers brushed off cooling actions, experts Brian Tan and Audrey Ong published in a note Monday. “An absence of feedback might well be interpreted as verification that policymakers are just half-heartedly trying to contain property costs.”

A 2025 property tax refund announced recently for homes occupied by their owners might also inadvertently compound property investor view regardless of being a targeted measure to aid tackle cost of living concerns, Barclays said.