To recap, the Singapore government on Dec 15 announced a 10th round of stringent cooling measures since 2010 which include: Raising the additional buyer’s stamp duty (ABSD) by 5-10 percentage points (ppt) from the second property onwards; tightening the total debt servicing ratio threshold (TDSR) and loan-to-value (LTV); as well as increasing housing land supply.
This year is expected to be a quiet one for the real estate sector, according to RHB Group Research analyst Vijay Natarajan. This is due to dual headwinds – recent implementation of stringent cooling measures and an increasingly hawkish stance on interest rates by the central banks – dampening the outlook of the sector.
However strong market fundamentals such as an improving job market, strong household balance sheets, and low inventory levels should provide a buffer.
