Thoughts on Khan Boon Wan – Soft Landing for Housing Market

MND Minister Khaw Boon Wan has mentioned on Tuesday that the government wants to see ‘soft landing’ for Singapore’s real estate housing. You can read the report from CNA here.

Looking at what was being discussed, especially some key highlights here

“”We want a soft landing for our housing market because a market crash benefits no one,” Mr Khaw said.

“Ms Foo and Er Lee Bee Wah suggested that we adjust the Additional Buyer’s Stamp Duty, especially for Singaporean buyers, when we are ready to unwind the cooling measures. I have also heard Dr Lily Neo’s very thoughtful words of caution.

“Indeed, we should not overkill. The property market is in transition and it is a time that calls for vigilance and nimbleness. We will be careful.”

I would think that the Government would probably do some calls to ease some of the measures already in placed soon, as prices have really eased off quite extensively on the public and private housing sector.

As we know the depressed housing prices was caused mainly by the government policies and measure, natural market forces are changing the scene as mortgage interest rate crepes up steadily for the past quarter as the US dollar continue to strengthen, which stresses Singaporeans and foreign real estate investors as a whole.

A heavily corrected local real estate market prices will not benefit everyone as it defies the initial key goal of HDB by creating wealth for Singaporeans through their homes. As long as homes become more affordable, the measures would have served its purpose. If there’s in-between lines that I am reading or even if not, we should be ready for some measure lifts.

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