National Development Minister Lawrence Wong said yesterday (16 Oct) that cooling measures in the property market will stay put for now.
With changing economic conditions both externally and within Singapore, “we don't want to risk a premature market rebound," said Mr Wong. However, he noted that the situation is "fluid" and "very dynamic" and assured that necessary adjustment will be made if and when conditions change.
Housing and Development Board (HDB) resale prices went up by almost 50 per cent between 2009 and 2013. Prices have, since their peak in the second quarter of 2013, fallen about 10 per cent. Private home prices are also down 8 per cent from their last peak in the third quarter of 2013.
These price drops are partly due to several measures introduced to tame the hot market, such as a mortgage servicing ratio limit of 30 per cent, introduced in 2013, capping the proportion of gross income that can be used to service a loan for an HDB flat.
Mr Wong did not rule out the possibility of lifting certain measures ahead of others, but did not point out any specific measures.
"We don't have to adjust by unwinding everything... but it's premature to say what exactly we will unwind, what will happen."
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Source:“Not time yet to unwind property cooling measures: Minister” (The Straits Times, 17 October 2015)