The full article can be found in The Straits Times, Top of The News Section, Page A12, 7 July 2018.
The Real Estate Developers’ Association of Singapore (Redas) said that there is no rationale to raise the Additional Buyer’s Stamp Duty (ABSD) rates and tighten the Loan-to-Value (LTV) limits as the property market has only started to pick up last year. Moreover, the old ABSD has already restricted buyers and is sufficient.
Redas was not alone in criticising the timing of the measures. ZACD Executive Director and Chief Investment Officer, Nicholas Mak said the authorities should have observed the take-up rate of new launches for at least another year, instead of “deflating the developers’ car tyres just before a race”.
He added, “The market has not run its course yet – you still have another 28,000 to 30,000 units coming on in the next few years, but they may have choked off demand. It ends up being a self-fulfilling prophecy of oversupply.”
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