Source: The Straits Times | 24 April 2020 Friday
This is a relatively good article, looking back at the situation of the previous crisis, the Global Financial Crisis and the current Covid-19 pandemic situation. It highlighted the vast difference between then and now. Prior to the Global Financial Crisis, private residential properties in Singapore generally soared 49% from 2005 to 2007. Despite the removal of Deferred Payment Scheme and the drop of max loan-to-value (LTV) to a cap of 80%, it has little deterrence towards short-term speculations. The bubble inevitably burst and prices plunged 25%.
In contrast, the introduction of ABSD and TDSR, as well as the new measures on max LTV and loan tenure, spread across several rounds of cooling measures, have suppressed property prices to a gradual increment of just 29% from end 2011 to end 2019. During this same period, Singaporeans have saved more than before as cash deposits surged 72% and CPF soared 105%. Since there isn’t a bubble, it is unlikely to see any crash. Hence, do you think you still need to wait any further? Feel free to contact us for a discussion.
Return To Home
| Call Us: +65 6750 4559
| Whatsapp Us
| Back To Property News