top of page
  • Joshua Tan

Cooling Measures Effects in Singapore's Property Market

Joshua Tan Realty—Cooling measures have been a means implemented to manage the property market.


But have you ever wondered why so? And how do these cooling measures actually affect you?


Let's find out.


effects of cooling measures in singapore property market, additional buyer's stamp duty (ABSD), TDSR, MSR, LTV
Joshua Tan Realty: Effects of Cooling Measures, How It Affects Us

Cooling Measures Effect #1: Allows Creating a More Stable Market


Back in 1997 and 2008 when we had both the Asian and Global crises respectively, prices crashed & rebounded. In a V-shaped manner.


If you actually remember the chart, you'd find the pattern of this chart looking familiar.


private property price index, cooling measures effects
private property price index, cooling measures effects


However, things seemed to have change after the 2013 round of cooling measures, where the cooling measures effects kicked in, and where the market dipped & corrected in a U-shape manner this time round.


private property price index, cooling measures effects, data chart
private property price index, cooling measures effects, data chart

One of measures you might most often hear from 2013 onward is the Additional Buyers's Stamp Duty (ABSD).


But more importantly, till date (April 2023) the market looks more resilient than ever, "sustaining" prices even through the period of COVID-19.


Which is what we all want--for property prices to go up steadily and stably.


This is many a time attributed to the fact that speculators have been sieved out, which also means people with no holding power (funds to hold on to the property) are being filtered out of the market.


Cooling Measures Effect #2: Allows Protection From Recession


Now you might ask, why is this so?


And the reason is simple. If we once again look back at why cooling measures were implemented in the first place, it was to cool down & dampen the market demand.

As a result of the cooling measures effects, many property owners actually hold back their cash.


Property prices that could have been inflated, are so to speak not as inflated anymore.


Now, in times of recession, this allows the Singapore government some "leeway" to ease cooling measures, as required, and bring back the demand especially from foreign investors.


This in turn creates a relatively stronger market for Singapore and further supports your property prices.


I hope this article has enabled you to understand more about cooling measures.


__


Found this helpful?

If you found this helpful, go ahead & follow Joshua Tan on social media to stay tuned for latest content & updates. Always stay in the know.


• YouTube: Joshua Tan realty

• Instagram: @mr_joshuatan

• Telegram: Joshua's Inner Circle


Have some questions?


Ask us here.


Need a quick answer? WhatsApp/Call 8488 2545 to reach me & my team of experienced real estate agents.


*Note: Any enquiry you make is non-obligatory.


Disclaimer: While every reasonable cause is taken to ensure the accuracy of information provided or presented here, no responsibility can be accepted for any loss of inconvenience caused by any error or omission. The ideas, suggestions, general principles, examples and other information presented here are for reference and educational purposes only. This presentation is not in any way intended to provide investment advice or recommendations to buy, sell or lease properties or any form of property or financial investment. Joshua Tan Realty, Joshua Tan, its officers and successors shall have no liability for any loss or expense whatsoever, relating to investment decisions made by the audience. All copyrights reserved.

Comments


Commenting has been turned off.
bottom of page