Commentary: Why residential property prices won’t be coming down despite cooling measures

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Over 50 project launches, unleashing 20,000 units, are expected in 2019, but it doesn’t mean prices will come down, says Edmund Tie & Company’s ...

SINGAPORE: Prior to the latest cooling measures introduced in July 2018, the last time similar regulations were rolled out to moderate the residential private property market was in 2013 with the introduction of the Total Debt Servicing Ratio .

A similar trend has been observed after the Government’s introduction of the latest cooling measures in July 2018. Second, developers will likely be more willing to maintain prices and accept a lower sell-down rate rather than resort to discounting, which may devalue the overall project and disappoint earlier buyers who paid higher prices.

Apart from early bird discounts, they will likely offer higher sales commissions to agents, and deferred payment arrangements for completed projects to boost sales. Buyers and investors tend to interpret such moves as an end to further tightening and anticipate that higher demand will drive further price increases.

 

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