No. of Recommendations: 5
https://www.marketwatch.com/story/singapore-real-e...Singapore property stocks fell Friday after the government announced new cooling measures to curb housing prices, surprising a market already facing economic uncertainty.
The measures, announced Thursday, include higher seller stamp duty rates for residential properties, while the holding period which would result in a seller's stamp duty was extended from three to four years.
The measures target at non-genuine home-buyers or speculators, a trend that has gained momentum over past few years and could accelerate as mortgage rates fall.
According to the ministries and the Monetary Authority of Singapore, there has been a sharp increase in the number of properties sold after a short period of ownership. The statement also noted a particularly steep rise in the sub-sale of incomplete units.
The new measures will reduce speculative activity and help curb price spikes driven by a small group of short-term investors, said Marcus Chu, chief executive of real-estate agency ERA Singapore.
"It is not designed to crack down on the market," Chu said.
Property owners who buy homes for their own use are unlikely to be affected, as they tend to remain in the same place for a long time, Christine Sun, chief researcher and strategist at Realion said.
Jeff
