Time to start withdrawing property curbs

[chialc88]

Time to start withdrawing property curbs - BT Editorial

With liquidity still ample and the economy and the job market relatively strong, it may be premature to withdraw all the cooling measures.

They were introduced progressively and pre-emptively

and their relaxation should likewise be calibrated, starting with the lowering of stamp duties.

But it is not too soon to start.

Waiting for sharp market corrections to do so would be too late.

Love Compassion


A Life not Reflected is a Life not Worth Living.

[viruskbs]

if i remember correctly, some experts said a few months back that Big G targettting a 20- 30% correction.
if that is the case, they may not have reached there threshold for withdrawing the cooling measures yet.

[opmi]

MAS said "average" LTV is 47%.

If Down 30%, LTV still 67%. Still can get loan refi and no top-up call from banks.

If individual LTV is 70%, drop 30%, LTV will be 100%. cannot loan refi, kenna margin call.

Govt should remove those special stamp duties when market prices drop 10-20%.
But not now.

[valuebuddies]

when cooling measures started to kick in bit by bit, the prices continued going up. Likewise when cooling measures start to be withdrawn one by one, IMO it still won't be so fast for prices to soften.

[specuvestor]

Most people never kenna margin call before so most people have no understanding or fear for it, until too late. Ask the directors of Blumont

Even in crisis banks are generally reluctant and slow to margin call property backed loans, even in 1998; as long as people pay their monthly.

This is a structural advantage for property investment and part of the positive reinforcement bias.

[chialc88]

mmm...
Then, my conclusion is More curbs should be coming...
Until the Gov is convinced that the growth is controlled.


A Life not Reflected is a Life not Worth Living.

[weijian]

when cooling measures started to kick in bit by bit, the prices continued going up. Likewise when cooling measures start to be withdrawn one by one, IMO it still won't be so fast for prices to soften.

Would withdrawal of cooling measures actually send a message to buyers/sellers that the market is not doing well and going downwards? If yes, will that deter investors from the market and result in a negative feedback loop?

[pianist]

if i remember correctly, some experts said a few months back that Big G targettting a 20- 30% correction.
if that is the case, they may not have reached there threshold for withdrawing the cooling measures yet.

I think they were referring to bto new flats at the ulu outskirts making sure that the prices is 20-30% cheaper/lower than mature estates'?
try this drop in mature estates and I bet a lot of votes will be lost in the next election
to many elderly, the flats are now their retirement cash cow

[Bibi]

to many elderly, the flats are now their retirement cash cow

Is it? For mine, i am their cash cow.

[viruskbs]

if i remember correctly, some experts said a few months back that Big G targettting a 20- 30% correction.
if that is the case, they may not have reached there threshold for withdrawing the cooling measures yet.

I think they were referring to bto new flats at the ulu outskirts making sure that the prices is 20-30% cheaper/lower than mature estates'?
try this drop in mature estates and I bet a lot of votes will be lost in the next election
to many elderly, the flats are now their retirement cash cow

it seems they will loose one set of votes if the prices continue to go up & lose another set if they go down. There is a another group which will be lost if the prices remain the same. So either way Big G is gonna lose votes. now they just have to decide which pool is the biggest one.