Ask an Expert: Property insiders weigh in on impact of new cooling measures

Impact of new cooling measure

A lot has been said about the new property cooling measures introduced in December last year. These included higher Additional Buyer’s Stamp Duty (ABSD) rates, lowering of the Loan-to-Value (LTV) limits and as well as the tightening of the total debt servicing ratio (TDSR) threshold.

These measures were implemented by the Singaporean government in a strong effort to cool the property market that was booming amidst the COVID-19 pandemic. But what does this mean for homeowners and potential buyers?

💭 What do new cooling measures mean for homebuyers?

“These broad, sweeping changes affect a wide demographic of property owners and investors, either looking for investment purposes or even for first-time homeowners,” shares Samuel Taylor of SoReal Prop.

“Though real estate statistics for Quarter 1 2022 still show increasing price trends in the residential market for sales and rentals, these increases should likely abate in the coming quarters of 2022.”

💡 So, how can readers prepare for it?

“We believe that potential investors should also consider other forms of real estate for investment purposes. Segments like retail, office and industrial properties have strong fundamentals that can provide good investment returns in the current climate.”

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