Welcome move all round

THIS WEEK'S TOPIC: What do you think about the latest tweaks to the property market cooling measures? Should more be done to further ease the curbs?

Chia Ngiang Hong President Singapore Green Building Council

FINALLY, we are able to see some light at the end of the tunnel. Although the tweaks this time are not very significant in substance, they are nevertheless a positive signal that the government is receptive and flexible in its review of the cooling measures vis-à-vis market conditions. It is certainly in the interest of the industry and Singapore to have a stable and healthy property market. Easing some restrictions which may have outlived their original intentions would help to ensure that the market is not inadvertently "frozen" beyond salvation.

Yeoh Oon Jin Executive Chairman PwC Singapore

THE latest tweaks to the cooling measures are a recalibration meant to assist a select group of homeowners. Though these tweaks are unlikely to have a significant impact on the property prices or volume of transactions, they have generated a positive sentiment in the property market and hopefully this will provide a cushion to the overall property prices which have been declining since the introduction of the cooling measures.

More importantly, it is a signal that there could be more recalibration of measures in the current sustained and difficult market conditions brought about by an oversupply of residential homes.

To reach a managed equilibrium in the property market, the Additional Buyer's Stamp Duty (ABSD) could be reduced to stimulate demand. On the supply side, developers exposed to ABSD and qualifying certificate (QC) rules on the unsold units could benefit from tweaks to the extension charges to be paid or an extension to the timeframe to sell.

This will provide confidence to first-time homeowners to return to the market since the risk of a sudden decline in property prices will be mitigated by the reduced pressure to dispose of the unsold units within a short time frame.

Terry O'Connor Group CEO Courts Asia

THE property cooling measures have gone a long way to achieving their initial intent. Property speculation has been curbed, and impact on housing prices significantly mitigated.

The relaxations on the Seller's Stamp Duty (SSD) and Total Debt Servicing Ratio (TDSR) are welcome steps in the right direction, and I believe that the time is now right to review the relevancy of the cooling measures and work towards a phased approach on relaxing them so that Singaporeans with genuine housing needs will not be compromised. Taking into consideration the wider context of the national agenda including family planning priorities, these policies should look to prioritise access to homes for new homeowners.

With the property market now fairly stable, I believe it will be to the benefit of many stakeholders to promote and work towards a self-regulating market in the near future.

Laletha Nithiyanandan Managing Director Behavioural Consulting Group

THE latest adjustments to the cooling measures are small, especially for those buying property for investment. But retirees and those with existing property investments can benefit from the tweaks to the TDSR in terms of increased liquidity as long as they don't get themselves into further debt. I think the cooling measures will have a lukewarm response, as the benefits to be gained from these changes are marginal.

There may be some hype initially and this may fuel a slow rise in prices. Despite the global economic uncertainty, Singapore remains a safe haven for investors from Asia , US and Europe.

Edwin Khew Teck Fook President The Institution of Engineers, Singapore

AS the changes are not major, they are unlikely to bring about any big impact. But the adjustments should arouse the interest of specific groups of buyers and developers and inject a notable dose of optimism in the otherwise subdued local property market.

It is necessary for the government to continue making such cautious but timely policy relaxations to stimulate the new homes market. It will drive up private sector construction demand, which has remained soft over the past few years.

This will in turn open up more opportunities for engineers to contribute to building a world-class urban environment for Singaporeans, and attract the younger generation to join the profession.

Henry Tan Managing Director Nexia TS

WITH major policy changes, sometimes it is not what is changed or the quantum of change that is key. It is the signalling of the policy trend on the property market cooling measures. The fact that this change was announced after the Budget is also interesting. Some may feel that this is a reaction to some significant changes in the property market. We need to remind ourselves that the cooling measures were put in place to ensure that our property market is stable and sustainable in the long run. Given that this has been substantially achieved, it is a good time to progressively release the cooling measures.

Ronald Lee Managing Director PrimeStaff

THE latest changes to ease the property market curbs are designed to help the various stakeholders - from sellers and buyers to developers. They should therefore have a positive effect on all parties and improve market sentiment somewhat.

Any improvement, however, will be very slight so I don't expect the announcements to have a significant improvement on the overall property market.

This latest move should help stimulate demand and stir more interest from buyers and investors at a manageable pace, without causing buyers to flood back into the market. So I think the new measures are well-calibrated and should suffice for now.

Lim Soon Hock Managing Director PLAN-B ICAG Pte Ltd

THAT the share prices of property developers appreciated following the announcement indicated a positive response from the market.

The new measures will make it easier for property purchases or resale. However, this positive development may be negated by the concomitant rises in property prices. Given that there is still oversupply in the market, I do not see these minor tweaks as having any material impact on the property market for some time to come, even from any pent-up demand.

As long as the Additional Buyer's Stamp Duty (ABSD) and the loan-to-value limit remain untouched, the property market will remain bearish.

David Leong Managing Director PeopleWorldwide Consulting Pte Ltd

THE tweaks to the property cooling measures have little impact on buying sentiment and are unlikely to boost transaction activities in the near to mid-term.

The lifting of the TDSR for mortgage loans with loan-to-value ratio of 50 per cent and below effectively still fences off the marginal and speculative investors as the government is still cautious about the the bubbling effect these speculative investors can bring to the market.

In short, this interim adjustment to the market curbs is to help sellers dispose of their investments sooner, and /or with a smaller stamp duty. It's a little breather but may not be enough to spur buying because the ABSD remains untouched.

The stay of ABSD means that buying may still be curtailed. The market is still tepid and the tweaks have not moved the needle much.

Hari V Krishnan CEO PropertyGuru Group

AT PropertyGuru, we view the latest tweaks to the property cooling measures as an indication that the government is closely watching the sector to ensure a healthy, thriving real estate market in Singapore, while addressing concerns from homeowners and investors.

In the short to medium term, the revisions to the Seller's Stamp Duty ought to encourage/incentivise real estate investors who have been sitting on the sidelines to enter the market, given the potential to realise capital gains within a shorter timeframe.

Buying activity in 2016 has been very encouraging, with the volume of resale transactions in the private residential market increasing more than 20 per cent year-on-year.

Given this, we think that the government is likely to wait and see the impact of these recent tweaks before making further moves on their end.

Zaheer K Merchant Regional Director (Singapore & Europe) QI Group of Companies

THE government's latest tweaks appear positive for Singapore's residential market.

While some homeowners could now be drawn to sell their homes, with the reduction of the seller's stamp duty, there is not likely to be a big impact in terms of sales volume given that the other major cooling measures continue to apply.

For private homeowners, the tweak to the TDSR appears to be advantageous since this will mean that accessibility to cash by taking up home equity loans is boosted. As for the new stamp duty, this was mainly implemented to close the loophole where bulk sales escape the ABSD charges. On balance, it would appear the net effect will see a marginal but controlled impact on sales volumes and prices.