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Singapore Minister Says Government Property Measures to be Overlooked

Posted by Marites Alma Christiansen on Feb 11, 2016 12:49 PM EST
Construction Boom Continues In Singapore Despite Asia's Recent Downturn more big
SINGAPORE - AUGUST 28: Office buildings light up the financial skyline as a construction site in seen in the foreground on August 28, 2013 in Singapore. The Ministry of Trade and Industry (MTI) has announced on August 12 that it has upgraded the GDP growth forecast for this year from 1.0 to 3.0 per cent, to 2.5 to 3.5 per cent. (Photo : Nicky Loh/Getty Images)

Singapore's hot property market could get saved from recently announced government measures in an effort to cool down its real estate market, according to the Straits TimesK Shanmugam, the city-state's Home Affairs and Law Minister, said that the government was prepared to review any property cooling efforts should they perceive the risks as already "being less or manageable."

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In a recent conference held with ERA Realty, the Minister said, "We have a rough idea of when to change, but that doesn't mean that we announce it."

Some of the measures introduced include Total Debt Servicing Ratio as well as the Additional Buyer's Stamp Duty. These measures aimed to avoid any uncertainties, especially in the banking system to further avoid any potential dangers of the real estate market crash, thus protecting Singaporeans as an end result.

Shanmugam also stated that it was not his directive to make unilateral announcements yet, as the Finance and National Development ministers were in the appropriate position to determine whether the risks are manageable or less risky, and if they need to take another look at the said policies.

On the other hand, the Business Times also featured JLL Asia's sentiment on the Singapore property market.

Head of research for Southeast Asia Chua Yang Liang said, "Looking back into the past, the residential market for example, corrected by 4 to 6 percent a quarter in some instances. Should the market lose footing, it is not impossible to expect a recessionary correction of this magnitude."

Liang added, "If this scenario pans out and threatens the stability of the property market and wider economy, it may prompt the government to revisit its property cooling measures and other macro-economic policies including economic stimulus packages."

With the Singapore stock market experiencing declines lately, the investment management firm could be right about the impending correction with its home market prices.

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