The government has sought to temper the market after home prices experienced five to six years of a “sharp up-cycle,” he said at an Economic Society of Singapore event on Friday.
Residential-property sales slumped 42 percent in June from May to the lowest level this year, official data last month showed.
“We went about it in a very determined way in the past four years,” Shanmugaratnam said of measures to cool prices.
“We’ve succeeded in tempering the market, it’s now in a phase of correction. But we’re still watching it very closely.”
Singapore home prices have fallen for seven consecutive quarters through June as tighter mortgage curbs cooled demand in Asia’s second-most expensive housing market.
The ruling People’s Action Party is preparing for general elections that are expected to be called soon. “Housing is critical, a unique part of the Singapore story,” said Shanmugaratnam, who’s also a deputy prime minister.
“The Asian markets always go through these cycles in the property market, and you’ve got to do something to temper it.” The government started introducing residential-property curbs in 2009.
Measures to combat low interest rates, which drew demand from foreign buyers, have accelerated since to include a cap on debt repayment at 60 percent of a borrower’s monthly income and higher stamp duties on home purchases.
bloomberg.com
No comments:
Post a Comment