I think stamp duty are more of a tool to deter foreign buying.
Interest rate rises will nt make gov change their mind, unless there is significant price drop
If prices drop and interest rates still remains low,
Govt won't roll back measures.
Stamp duties for locals and foreigners.
I personally think that Singapore pvt property prices are still at affordable level and yet to show significant signs of bubble. Just the cooling measures that cause slowdown in demands and potential investors are staying out of market because they don't have enough hard cash and also expecting further drop in prices. With Singapore poised to overtake Switzerland in wealth management, the demands in pvt housing should remain strong in long run. But I think the government would not stimulate the market until prices corrected more than 30% on what it has risen over the past 6 years.
I am saving up the bullets, and waiting patiently for a good entry somewhere in 2016/2017.
I think the govt has no problem with high property prices
if everyone pay full cash.
The issue the govt worry about is systemic risks from
the asset deflation.
(16-04-2014, 05:01 PM)opmi Wrote: [ -> ]I think the govt has no problem with high property prices
if everyone pay full cash.
The issue the govt worry about is systemic risks from
the asset deflation.
ya, cos all these properties has to loan from banks, which will carry the loans on their books...
If everyone pays cash for their pte properties, no problem lah!
So, we all know that TDSR is to stay.
At the current rate of 60%, is it too relax?
Would it make sense to relax to 90% aka allow Singaporean to take up more loan/debt/risks?
If not, then TDSR will have only one direction to go aka down.
Says, now market condition changed and prompted PAP government to adjust TDSR to 50%, can you still afford to buy?
What if TDSR is at 30% or 35%? which is current MSR(loan restriction) for HDB and EC?
My thought is current TDSR of 60% might be a good things (compare to 50 or 30% in the future).
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(16-04-2014, 05:01 PM)opmi Wrote: [ -> ]I think the govt has no problem with high property prices
if everyone pay full cash.
The issue the govt worry about is systemic risks from
the asset deflation.
Technically true, but govt also concerned about high property prices transalting to high business cost.
As discussed in another thread, FUNDAMENTALLY property are an expense (prepaid expense) rather than an asset to an operating entity.