Minister for National Development Desmond Lee stated that the government is” not reluctant” to implementing more chilling measures as house resale prices are rising, but that these would not be soon because current efforts should first be allowed to work through the marketplace.
The international financial atmosphere also poses more uncertainties, including possible trade restrictions, raised interest rates and a tough political landscape, said Mr Lee in a media interview earlier this week.
” You must be aware of the economic surroundings and never overcorrect if you want to get very strong demand-side measures,” he said.” This could lead to the market downturn being sharper than what most home owners would anticipate.”
Since December 2021, Singapore has implemented four pieces of cooling methods. The most recent, which was put in place in August, increased the maximum mortgage a home buyer you receive from the Housing Board.
The cut in the loan-to-value limit , from 80 to 75 per cent aimed to soften need at the higher end of the public accommodation resale market.
The change affects one in 10 consumers, said Mr Lee, adding that the state has to “let this determine work its way through” as it has only been a few months.
Another important estimate is the 15-month wait-out period , for personal property owners before they can buy a non-subsidised HDB level. This principle, which was introduced on September 30, 2022, has somewhat decreased the number of private property owners purchasing expensive resale apartments.
Personal house owners accounted for 34 % of consumers of cottages sold for a million dollars or more between Jan 1 and Sep 29 of 2022. Using data from January to November 2024, this has decreased by more than half to about 12 %.
When asked for his reaction to some market participants calling for the estimate to be lifted, Mr. Lee said the wait-out period will remain in place until the business stabilises.
In order to counteract market pressures, the state is instantly increasing housing supply. A commitment to deliver 100, 000 Build-to-Order ( BTO ) flats between 2021 and 2025 is on track.
Personal cover offer is also expanding. 8, 505 secret homes may be made available through the federal land sales program in the first quarter of 2025, an increase from the 8, 140 units that were released in the second quarter of 2024.
” Let the supply and demand-side measures work their way through”, Mr Lee said. ” We are not averse to putting in new measures if necessary, because we need to ultimately make sure there’s no property bubble, whether it’s on the private side or the public housing side” . ,