SINGAPORE: Singapore’s property market could face more “aggressive” curbs if authorities fail to address a growing homebuying frenzy by early next year, Barclays Plc warned, according to a Bloomberg report.
On Monday, analysts Brian Tan and Audrey Ong said that a recent jump in sales had raised concerns about a “revival in property prices,” similar to the price increases seen from 2017 to 2019.
They noted that if no action is taken, it could be seen as confirmation that policymakers are just “half-heartedly” trying to contain property prices.
In November, over 2,400 new private homes were sold, according to preliminary data from the Urban Redevelopment Authority (URA). This marks the highest number of sales in over a decade, sparking fears of a price increase.
Singapore’s central bank said last week that lower domestic lending rates have increased confidence in the private property market. It added that the government “will remain vigilant to market developments” in its annual financial stability review.
In the past three years, authorities have intervened three times to cool the market, including a 2023 decision to raise stamp duty for most foreign buyers to 60%, one of the highest rates worldwide.
A property tax rebate for owner-occupied homes, set for 2025, could unintentionally boost property investor sentiment, even though it is meant to address cost of living concerns, Barclays said.
Its analysts added that real estate investors are likely to interpret the announcement as a sign that the government is easing up on its controls, and some may choose to see it as an opportunity to fuel the frenzy if investor sentiment improves. /TISG
Read also: URA opens tender for residential sites at Media Circle and Bayshore Road to yield over 326,000 units
Featured image by Depositphotos (for illustration purposes only)
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