Singapore Property Cooling measures
The impact:-
The Price index has rose despite several cooling measures introduces since 2009.
Have you wonder why?
Singapore is a wonderful places to stay in. It is a place for many foreigners to invest their nest now and they can bring their family members over to stay, study and work here. It has a stability government and policies are implemented to suits most of the needs to people in this country. The cooling measures is to prevent speculative and huge bubble to burst and make a reasonable and affordable property price for everyone in Singapore.
Challenges:
The TDSR (Total Debt Servicing Ratio) has it advantages and disadvantage.
Lower values of TDSR ratio are favourable indicating lesser risk. Higher TDSR is unfavourable because it means that the buyers face higher risk, especially during higher interest rates that it can affect the property to have a fire-sale.
Base on statistics, there is an increasing trend in of money lending to customers which can be alarming to both the clients and the Singapore economy because it affect the customers' wealth. This means that clients have lesser money to spend that resulted in lower outflow of cash. Therefore, it is affect the demand and supply of the property. Finally resulted in affect Singapore economy.
View on Long Term:
As you can see in the chart, property price in Singapore has to go up to catch up with the inflations. The higher inflation rate was in April 2008 having an index of 7.5. Property Price index has rose since 1960.
Another reason for the increase in price is due that the demand of the Property are very much more than its supply. So when the demand is higher that the supply, the price index will continue to rise further.
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