SINGAPORE (July 12): OCBC Research expects transaction volumes for mortgage loans to come off after Singapore unexpectedly announced more property cooling measures last week.
OCBC says the property cooling measures are reminiscent of those introduced in Jan 2013, which led to a 4.5-year decline in residential property prices in Singapore. This round, there is an increase in additional buyer’s stamp duty (ABSD) and the loan-to-value ratio was brought down by 5% across the board.
From Jan 2013 to the trough in 2016, the Real Estate index shed 28.4% before staging a recovery starting in early 2017. From early 2017 to October 2017, the index gained 33% -- touching a new five-year high.