As we addressed the concern of Singapore oversupply of residential market earlier, our housing price index had hit all time high of 152.8. Many home buyers will be wondering ‘Should I buy now or should I wait for a bit?”.
Looking back at the major events that occurred during the last property price index record (2nd Quarter 2013 at 154.6), we realized that the government had actually came out two of Singapore’s biggest cooling measures around this period. This effectively caused the price index fell in the coming months, making 2014 the first year of a 4-quarter steady price decline since 2008 (and before that, 2001). What are the 2 cooling measures? – 1. Revision of ABSD & Loan-to-value LTV. 2. Total debt servicing ratio TDSR in short. These measures have a common objective: reducing the affordability of home buyers.
The last time the price of Singapore housing market fall was during the financial meltdown and just after the dotcom bubble bursting.
Having say that, the watchful authorities willing to disrupt the property market with the measures to keep housing prices from further skyrocketing.