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  #8237 (permalink)  
Old 22-07-2015, 09:24 PM
Posts: n/a

We should increase the ABSD to 15% for 2nd and more property purchase for citizens and PRs so that we will further dampen investment properties purchase.

Originally Posted by Unregistered View Post
Don't panic. It's all about demand, supply and government interference. Right now, the government still thinks the property values are high, so they want to see the prices drop a little more. Furthermore, there's a lot of cash in the system. That's why the SSB is created to soak up the excess cash sloshing around.

Had the government removed the cooling measures now, the property prices would shoot up again because the cash in the system.

For those who have already got their investment homes, it is actually a good thing that not many of the new homes were not sold. If they were sold, they would eventually contribute to the supply of rental units bringing down rental returns. As it is, as long as the new homes were not sold, the growth of the supply of rental units will be gradual.

So just wait. In the meantime, keep your extra cash in the SSB to earn gauranteed interest. Once the prices dropped to a level acceptable to the government, they will remove the cooling measures and buyers will return - in large numbers. A lot of buyers are currently waiting on the sidelines.
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