Singapore property news: No more property market speculation

Country:  Singapore

14 September 2009

The Singapore government will release more land for Singapore property developers to build on and make it harder for people buying property in Singapore to defer payments, in an attempt to curb curbing speculation in the housing market, according to a Reuters report.

As of today, banks and developers will not be permitted to offer loans on Singapore homes under construction where the borrower need only put down as little as a 5% cash deposit defer repayment until the property is completed.

The government also said it will reinstate its "confirmed list" of land sales in the first half of 2010 and increase the supply of land available to developers.

National Development Minister Mah Bow Tan said in Parliament: “Given the current market conditions, the government has decided to adopt several measures to temper the exuberance in the market and pre-empt any speculative bubble from forming.”

Singapore has taken what it sees as the necessary steps to cool an overheated market after Asian governments issued a warning last week that speculative bubbles were potentially forming in property markets across the continent.

Mah's announcement in Parliament caused property stocks to fall sharply, with City Developments falling as much as 5.6%. CapitaLand fell 3.4% while Keppel Land was down 4.3%.

Singapore property prices have soared in recent months, with transactions hitting record monthly highs.

"We are currently seeing signs of heightened speculative activity, although the level of speculation is not yet extreme," Mah concluded.

See Also:   Marc Da-Silva, Property investment news, Singapore