SINGAPORE — Property prices, which has seen a sharp increase this year, is likely to slow down after the Government moved late on Wednesday to cool the property market.
The new rules for this round of cooling after the one in July 2018 is to tamper the price increases and keep housingAmong the new rules are stricter loan limits for buyers taking a home loan from HDB and a higher Additional Buyer's Stamp Duty for the purchase of private properties beyond the first one.
The new limits will encourage buyers to be more prudent with their purchases since there are concerns about impending interest rate hikes, he added. It also said that the increase in the stamp duties will exert “immense additional pressure” on land acquisition. Right now, owners who sell their HDB flat first before getting a private property do not have to pay any ABSD.
Likewise, Mr Lee of Huttons Asia said that he expects price increases of private housing to be around 3 per cent next year on the back of higher construction costs. This is lower than the initial forecast of up to 5 per cent.