Homepage
PR Newswire
(10-03-2017, 07:57 PM)cfa Wrote: More residential units will be heading into secondary market earlier than expected , so should see weakening home prices !
When SSD was first introduced, the intention was to dampen short term speculation (those rushing in to buy and then flip) and hence stabilize a rising market. But such 1-sided cooling measures would in practice, withdraw supply from the secondary market, further distorting the supply-demand (demand could be created faster than actual supply could come online) and resulting in further price increases in the short term. Hence, as you mentioned, the inverse could be true with SSD taken away now.
Of course, the relaxation of cooling measures could also been seen as pre-cursor to "how bad things may be". There is always some sort of suspicion that Gov (Big Daddy) has all the leading indicators (no. of ships docking in SG ports? the operating numbers from many of its businesses that GIC/Temasek holds around the world?). In recent years since the loss of Aljunied GRC, it has also seem to act more pre-emptive than reactive in nature - further supporting this conclusion.
Aug2013 short commentary on SSD: http://www.todayonline.com/business/prop...dged-sword
Housing price index: http://www.singstat.gov.sg/statistics/vi...rice-index