Property analysts have described the latest set of government measures as the “tsunami” of property cooling measures, as it affects public and private housing, executive condominiums, and industrial properties.
Some say, the additional stamp duty will hit investors wanting to own a second or subsequent property.
Mr Mohamed Ismail, CEO of PropNex, said: “Such a drastic move will have a downward spiral effect, loss of confidence in the market… will the current property prices go under such that people who bought in recent times… will their property be a negative asset moving forward?
“More pertinent, as far as public housing here, is the restrictions on PR (Permanent Resident). I think there has been a lot of concerns and people have raised about PR being able to benefit while holding on to public housing and investing. These measures will increase the supply of public housing, and overall, this will help the public housing to be further moderated.”
Meanwhile, some analysts say the new measures on industrial properties did not come as a surprise.
Mr Donald Han, Managing Director of HSR Property Consultants, said: “The measures are quite timely and could have come earlier because if you notice, industrial prices have actually increased by about average 25 per cent per annum since 2010, and if you look at last year, the full year price estimate capital values have increased by more than 30 per cent.
“So all in, all the government could have actually reacted earlier on, perhaps 12 months early rather than now. But it’s never too late. I think that will have a huge impact on the pace of price movement, moving forward. I expect industrial price movement this year to be a bit more moderated to a single-digit increase, if any.”
Source : Channel NewsAsia – 11 Jan 2013