New Property Rules

So on Thursday we hear of the new property cooling measures.

1) Sellers Stamp Duty is raised
2) Loan to value capped at 60%

What is really going to affect us is the 2nd ruling which means we'll have to save up even more.

I think this round of drastic measures will surely cause the property market to fall quite drastically.

Not as many people are going to buy 2nd properties anymore, probably preferring to put their money into equities or funds instead.

The worst affected will be the high-end to mid-end condos, which will see less short-term buyers especially those from overseas hoping to make a quick buck. Selling within 4 years effectively wipes out most gains due to the stamp duty being so high. Also those wanting to buy 2nd properties tend to be looking at this segment of condos. There will be less condo buyers as a whole as well since more people are willing to sit in the sidelines and wait.

As such, expect condo prices to fall quite a fair bit, especially the older ones. We are also already reading about new launches turning into ghost towns overnight.

Once these prices fall, HDB prices will follow suit since some 1st timers will rather buy condos since they are more affordable.

Rental in prime areas, and landed properties should be unaffected. This set of rulings will make 1st time buyers the happiest, provided they can wait for the cooling measures to take full effect.

I think our gahmen is very smart. Launched and sell off most ECs, BTOs and DBSS projects already at the top of the market then only announce this ruling. I doubt you will find any new launches anytime soon.

We should see the whole pricing mechanism begin after a 6 month period when sellers just cannot than anymore. This is now officially a buyers market.

Hopefully I can find something I really like in the East Coast soon.