Singapore authorities may just take its foot off the brakes and relax some property curbs this year, said Kwek Leng Beng, the billionaire executive chairman of City Developments Ltd (CDL), which built luxury condominiums such as the St. Regis Residences near the Orchard Road shopping belt.
Mid-income and low-end housing could see further price declines and the high-end market remains subdued, he added.
“They will press the button at the right time although developers are hoping they will do it sooner than later,” Kwek said. “I think they will do something this year, that’s my speculation, as there are a lot of mid- and low-end homes coming up. I suspect it will be the abolishing of the buyer’s stamp duties.”
Singapore has succeeded in taming record home prices with a slew of property cooling measures which included capping mortgage loan financing to 60% of a borrower’s monthly income, higher stamp duties on home purchases and an increase in real estate taxes.
Home values have dropped 8.4% from the peak in 2013 and sales have since declined to about half the level that year.