New cooling measures may be scrapped if economy worsens

The latest property cooling measures could be removed if the Singapore economy deteriorates or stagnates amid the looming economic downturn, according to analysts.

However, if home prices continue to increase despite the new policy, home buyers can expect the measures to remain.

According to a report by The Straits Times, developers have been giving warnings since the implementation of the cooling measures, saying it could turn away foreign investment, drive down property values, and therefore, possibly damage an already volatile economy.

Wong Heang Fine, President of the Real Estate Developers Association, warned of a knock-on effect on mortgages that could lead to a decline in home equity values and shrinking wealth.

Source : PropertyGuru – 29 Dec 2011

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