Monday, February 14, 2011

REDAS: Singapore cooling measures stabilising market

Singapore’s recently implemented cooling measures have begun to effectively stabilize the property market, the Real Estate Developers Association of Singapore (REDAS) said last week.
“There’s a drop in volume, but I think that’s expected because of hesitation and uncertainty,” said Mr Lim Ee Seng, first vice-president of REDAS, at the association’s Lunar New Year reception, as quoted by Channel News Asia.  “Properties that were launched after the measures still had a very decent take-up. That clearly demonstrates that there’s a pool of people who are genuinely in need of properties.”
“So as we eagerly await good news from the upcoming Budget, and with the property market stabilising from the latest round of cooling measures by the government, I hope any further measures by the Singapore government would only be made after considering all options,” added Wong Heang Fine, president of REDAS.
Volume of transactions has dropped by about 30 per cent according to some analysts,  but REDAS still expects from S$12 million to S$14 million (US$9.4 billion to US$ 10.9 billion) in property investment this year.
Still, some analysts predict a decrease in the amount of foreign investment in Singapore. “I can foresee that with the introduction of higher interest rates in China, the liquidity in Singapore is going to be affected and I believe not as much funds will flow into Singapore as compared with the past,”  commented Eric Tan, chief executive of real estate consultants GSK Global.

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