Why do governments frequently implement property measures?
Budget Day on Valentine’s Day is a wealth tax to collect more from the rich & privileged.
Last year Sep measures were targeted to make sure prudent purchases and being made.
This time round, the measures are focusing on rich foreigners which we are seeing coming in fast & furious.
When the Gov is unable to increase the supply of properties in the market due to the 4-5 year construction timeline, they choose to opt to control demand instead.
We cannot deny the fact that supply in the housing market right now remains low and we are not seeing a high supply pipeline beyond 2025,2026.
The recent cooling measures, like the one implemented on Feb23 & Sep22 don’t seem to have a significant impact on the majority of real estate purchases.
In fact, the private property price index has continued to climb by 3.2% in Q123 due to the low supply.
Every time there is major announcements about measure, the market will enter into a lower volume for the next 3-6 months because some buyers will adopt a wait & see approach.
However, we cannot deny the fundamentals of the long term attractiveness of the real estate market.
Developers may be more sensitive towards pricing their upcoming launches or hold back any price increase that they had planned.
This will present good opportunities for buyers who believe in the robustness of Singapore real estate and take advantage to move in with lower competition.
Ending off with this question, if so many foreigners are so eager to buy into Singapore real estate, why not us?