Buoyant property sales in recent months have sparked fresh concerns that another
round of cooling measures may be on the cards despite the last round of measures
introduced in December 2011.
Experts said the appetite for home purchases
in Singapore is still strong despite several rounds of cooling measures that
were introduced by the government.
In fact, property developers have been
selling over 2,000 private homes every month in 2012 -- well above the monthly
historical average of 1,400 units.
During the last parliament sitting,
National Development Minister Khaw Boon Wan told the House that the five rounds
of measures implemented between September 2009 and December last year would need
more time to cool the property market.
Although property sales are
expected to remain above 2,000 units a month over the next few months, experts
said it was unlikely that the authorities would introduce another round of
cooling measures soon.
Norman Ho, a real estate partner at Rodyk &
Davidson, said: "I don't think any cooling measures should come in any further.
... I don't think (capital gains tax) should be implemented because Singapore,
being an open economy, ... it actually has a repercussion on the
economy.
"It destabilises the economy. It just doesn't affect the
purchasing of residential property itself, but it affects the whole outlook of
the economy."
Low borrowing rates and a flush of liquidity in the market
have been blamed for the buoyant property demand.
Experts said one way to
curb demand is to restrict housing loans available for home
buyers.
Donald Han, HSR's special advisor, said: "To restrict the number
of multiple investments per investor, one possible option would be to look into
the loan-to-value ratio.
"That is, if you are looking at your first
property for your own occupation, that loan quantum can be as high as 80%. But once you are buying into your second and third property, that could
come down to as (low) as 60% or even 30 to 50%."
Nicholas
Mark, research head at SLP International, said: "The problem right now in the
residential property market is not the level of speculation nor high price
growth.
"Prices are stabilising. In fact in some sectors, prices are
declining marginally, while the level of speculation has reached a three-year
low.
"The problem is actually over-investment -- there is a risk there
could be a bubble caused by shoebox apartments."
Analysts said the rising
supply of shoebox apartments is one of the factors that is keeping the property
sector hot.
By 2015, some 9,700 shoebox apartments are projected to be
ready. Eight out of ten apartments will be in the heartlands, an untested market
for such apartments that is the size of four car park spaces.
Some
analysts have suggested that any possible cooling measures should just be
focused on this segment.
Source: Channel News Asia
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