Singapore may need more ‘aggressive’ property cooling measures: Barclays

Singapore’s central bank stated last week that the easing of domestic lending rates has improved view in the private property market. The government “will definitely stay vigilant to market developments”, it said in an annual financial security evaluation.

A recent renewal in the nonpublic marketplace steered by a hit November has “raised the possibility of a resurgence in property rates”, and a repeat of 2017-2019 the moment buyers disregarded cooling procedures, experts Brian Tan and Audrey Ong wrote in a note Monday. “An absence of reaction might well be rendered as confirmation that policymakers are only half-heartedly attempting to include property rates.”

Singapore authorities might require to add more “hostile” property restraints in the future if they neglect to tackle a homebuying frenzy by early next year, Barclays warned.

A 2025 property tax discount released recently for homes utilized by their owners could also inadvertently compound property investor sentiment regardless of being a targeted measure to assist tackle cost of living concerns, Barclays said.

Hill House MACLY Group, ROXY Holdings, LWH Holdings

” Real estate investors are still likely to retroactively interpret the statement as a sign that the government is relieving on the brakes,” its analysts wrote. “Some market gamers might choose to see what they want to notice in order to muster as several disagreements as they can to further fuel the frenzy if capitalist view strengthens.”

More than 2,400 new exclusive homes were sold past month, according to preliminary information from the Urban Redevelopment Authority, setting sales on speed for their ideal month in greater than a decade.

Authorities have responded 3 times in just less than three years to cool the private market, most recently by increasing stamp duty for the majority of immigrants to 60% in 2023, one of the highest possible rates worldwide.