Singapore’s Deputy Prime Minister and Finance Minister Heng Swee Keat has said that the government has no plans to ease property cooling measures
Singapore’s Deputy Prime Minister and Finance Minister Heng Swee Keat revealed that the government has no plans to ease the property cooling measures.
His statement comes after developers made renewed calls to loosen a measure penalising them for their failure to complete and sell new projects in five years.
It is not on our radar at this point because we need to make sure that we stabilise the economy and we address long-term structural issues, explained Heng in a Bloomberg TV interview.
The city-state introduced the curbs – which developers described as punitive – in July 2018 in a bid to rein in house-price growth.
To stop developers from hoarding land, the government gave them five years from the date of acquisition of a site to build and sell all units. Otherwise, developers will face a 25% ABSD levy.
The curbs have been successful in keeping a lid on the market as prices rose just 0.5% in Q4 2019. Sales also fluctuated, with January registering a 15% hike in transactions, reversing the 54% slump seen in December, reported Bloomberg.
Earlier in the month, Singapore eased another restriction for some developers by exempting listed firms with substantial connection to Singapore from the Qualifying Certificate regime.
Under this regime, firms are mandated to complete development in five years and sell all units within a project in two years of its completion.
The relaxing of the measure prompted speculation that the government would be unwinding property curbs.
They are reading too much into that. In Singapore’s context, property is not just an investment, it is a home for people and we must make sure that we get that right, said Heng. That everyone must feel that this is my home, this is something which I as an ordinary worker has something to look forward to.
The articles are for information purposes only and Invest for Property shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.
Invest for Property does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.
Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.