2014 is set to be a mellow and subdued year for the Singapore property market.
It is less likely that the government will introduce new policies next year after having implemented a few cooling measures this year. Thus, the outlook for the property market is expected to be subdued.
Nevertheless, there is still possibility that the current measures will be re-examined by the government. If there were to be any changes, it would be on existing policies that will be re-examined.
The period during which the review of existing measures will take place largely depends on the overall growth of Singapore’s economy, as well as the progress of the property market.
Analysts say that if the Property Price Index grows at a steady rate of 1-2% for each quarter, it is considered to be a healthy growth figure for the country.
A significant measure that was introduced this year was the change in the Total Debt Servicing Ratio ( TDSR ), which brought about market-wide implications – from the private and public property owners to retail, office and industrial sectors.
The new measure, which came to effect on 29 June, made it compulsory for banks to include the total debt obligations of a debtor before handing out loans for homes. Various measures were also implemented to impact EC buyers and the industrial sector this year.
It is observed that the the Total Debt Servicing Ratio measure was the most significant among those introduced this year. It also brought about a positive impact for non-residential properties in the first two quarters.
On the whole, prices for residential properties will rise around 2% compared to this time in 2012 and prices have remained stagnant for the past 3 months. Prices for high-end projects have been constant, though they may be aggressively adjusted with TOPs awarded to a greater number of projects in 2014.