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18-01-2022, 11:11 PM
Things are not looking bright for the real estate sector this year: RHB
Samantha Chiew
Mon, 17 January 2022, 10:48 am
2022 is expected to be a quiet year for the real estate sector.
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.
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.
The measures have since taken wind out of the sails in the property market, with only one major launch seen – Perfect Ten in Bukit Timah which saw muted sales (12 out of 230 units) during the launch weekend, despite offering a 5% discount on units.
“Looking forward, we believe the government could look at implementing a ‘wealth tax’ for high-value property sales, to further curb speculative/investment demand and increase revenue,” says Natarajan.
https://sg.finance.yahoo.com/news/things...00496.html
Samantha Chiew
Mon, 17 January 2022, 10:48 am
2022 is expected to be a quiet year for the real estate sector.
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.
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.
The measures have since taken wind out of the sails in the property market, with only one major launch seen – Perfect Ten in Bukit Timah which saw muted sales (12 out of 230 units) during the launch weekend, despite offering a 5% discount on units.
“Looking forward, we believe the government could look at implementing a ‘wealth tax’ for high-value property sales, to further curb speculative/investment demand and increase revenue,” says Natarajan.
https://sg.finance.yahoo.com/news/things...00496.html
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