An analyst said that the recent tweak in policy could be the beginning of the unwinding of cooling measures but they do not expect it to bring much impact to the property market.
The reduced Seller’s Stamp Duty will merely provide the extra option and relief to owners who wish to sell their properties within the first three years. It is unlikely that property prices in both the primary and secondary markets will increase.
The Additional Buyer’s Stamp Duty (ABSD) and loan-to-value (LTV) measures are still unchanged. And given that supply in the residential market is still abundant, developers and sellers will still price their properties realistically when selling.
Ong Kah Seng, Director at R’ST Resarch believes that the reduction in SSD could lead to developers selling more stock rapidly for the next two months especially in projects with strong unique selling points.
More buyers could also be enticed back into the market as they might view the cooling measures tweak as a sign of the marketing bottoming out and therefore are hopeful of a price recovery.