SINGAPORE: The Government has announced more measures to maintain a stable and sustainable property market.

From Friday, the holding period for imposition of Seller's Stamp Duty (SSD) will be raised to four years from the current three.

The SSD rates would also be raised while the Loan-To-Value (LTV) limit would be lowered to 50 per cent on housing loans for property buyers who are not individuals.

The LTV limit would also be lowered to 60 per cent for individual property buyers with one or more outstanding housing loans.

The Government said its objective is to ensure a stable and sustainable property market where prices move in line with economic fundamentals.

Analysts said they believe the measures could further curb speculation in the market.

Research Consultancy SLP International executive director Nicholas Mak said: "This is going to basically drive another nail into the coffin of anybody who has thoughts of short-term investments -- in other words speculation in the property market.

"This is quite a drastic measure to try to drive out short-term investors because by raising the Seller's Stamp Duty to a very punitive rate of eight per cent and above basically creams off all the profits that a short-term investor hopes to gain".

Chesterton Suntec International head of research and consultancy Colin Tan said he was surprised at the timing of the new measures.

"I think everyone recognises that the liquidity problem is a global one and that the measures are meant to inject some sanity at certain points in time," he said.

"I think everybody (had) never expected them to last very long but apparently it's so strong that they feel that maybe quite soon, after August 30, they need to act again.

"The message sent here is pretty strong. I think for a while the market should cool down."

Previous measures have, to some extent, moderated the market, but sentiments remain buoyant.

It said low interest rates plus excessive liquidity in the financial system, both in Singapore and globally, could cause prices to rise beyond sustainable levels based on economic fundamentals.

Moreover, when interest rates eventually rise, it could strain purchasers who have overextended themselves financially.

Therefore, the Government said it has decided to introduce additional targeted measures to cool the property market and encourage greater financial prudence among property purchasers.

It said there's an ample supply of private residential units, and buyers need not rush to buy now.

It added it would continue to ensure an adequate supply of housing to meet demand.

The Government also said it would continue to monitor the property market closely and take further steps to promote a stable and sustainable property market if necessary.

-CNA/wk

 

 

Yeah no choice, because from the emails sent to me, seems like a few people didn't plan their trades ahead. Very dangerous, like what iPunter said, capital protection is very important.

So just to play safe, I put my cut-loss and take-profit triggers.

Usually set at fibonacci retracement levels, or at support / resistance levels.

MF Global CFDs.

Any good platform will provide cut-loss trigger and take-profit triggers. 

Otherwise you won't be able to leave your monitor. 

good what platform you are using why so many features...

mine are cimb and uobkh.

Sorry to differ from your view...

If only for the digestion of newbies, may I add....

  My view is that no one can say for sure that a trend (be it downtrend or uptrend) is 'still intact'...

    All trends can reverse without anyone noticing. And all analysts can do is analyse past data at EOD.

       But such analysis cannot, and should not be used to conclusively proclaim a trend direction.

         In this regard I still remember certain forum member/s who used to declare trends daily for individual stocks.

           The problem is that stock newbies tend to swallow such declarations from seniors as gospel truth.

              The danger then, is rather obviou$...

                 Once again, I emphasise for the benefit of newbies...

                     No one can tell (ie. predict) the trend.. .