They might. According to DBS Group Holdings chief executive Piyush Gupta, the most recent cooling measures ‘have a lot of teeth and affect everyone’. Some of the biggest teeth include higher additional stamp duty and stricter loan limits. Thus is will somehow impact anyone buying a home, whether it is the first-time buyer or the seasoned real estate investor.
Mr. Gupta considers the measures a possible reflection of the Singapore Government’s dilemma balancing between ‘growth versus inflation, and growth versus social stability’. Not surprising since housing was one of the most hotly debated issues at the last elections.
There is speculation that home sales may dip by as much as 30%, in number, not in price. Property buyers may back off for a while but in the near-term, prices are expected to stay high as developers currently do have a strong balance sheet and some holding power. As time goes by, prices are expected to either plateau or dip 5 to 10 per cent, mainly in the prime segment.
As developers continue to buy up land from the Government Land Sales Programme (GLS), they will continue to build new homes at the current market high. And as population is expected to continue to rise, it might not be likely that prices will drop due to a demand-supply imbalance. Stable employment and interest rates will also keep the game going. The tipping point is not yet in sight.
According to a UOB report by Mr Francis Tan and Mr Jimmy Koh , even if home prices were to correct, first-time buyers may take the opportunity to buy thus softening the blow on the market.
Well, in short, whether or not you should play the waiting game, depends entirely on whether you have the time and money to wait, or not wait.