Policy tweaks to ensure a softer landing

THE calls to ease the property cooling measures affecting the Singapore residential property market have gained intensity amid news of tepid property sales and falling prices. Although the government has said that prices have yet to reach a "meaningful correction", it may be worthwhile considering recalibrating some of the cooling measures, to ensure a sustainable property market in the long run and a softer landing for the real estate sector.

Already, private property prices have declined in the past four successive quarters. Further, anecdotal evidence suggests that prices have fallen more significantly in the high and mid-end segments. If the trend continues and gains momentum next year, it may create a diminishing wealth effect which can translate to hurting consumer confidence and spending.

In view of these, here are some suggestions on possible tweaks to existing policies.