StockTalk(7.28): Singapore's public housing resale prices moderate in Q2 2023: Will prudent borrowing measures slow down the market further?

Moomoo SGOP :  What impact do you think the measures to moderate demand and encourage prudent borrowing will have on the future growth of public housing resale prices?
Join us and share your thoughts on today's topic!

polite Unicorn_4369 : Time to cool the HDB with stringent measures

Gong Xi Fuck Cai ❤ : Singapore housing will continue to go up and up, dig here and dig there to keep building up. Raise here ah raise there ah keep raising up. Raise ah raise ah till everything only goes up.

Shootingstar : Hdb will continue to increase in prices for cpf board and banks to earn interest. Anywhere in the world housing is a primary contributor for a nations gdp and pension earning mechanism

102237485 : Nice

ZnWC : What impact do you think the measures to moderate demand and encourage prudent borrowing will have on the future growth of public housing resale prices?

Singapore government has been calling for prudent borrowing and buy house within your mean for many years but property price kept increasing. The main reasons are due to Singapore stable economy, foreigner investing in property and public housing is still in high demand. But lately the uptrend is slowing down.

Personally I think public housing resale price will continue to rise. Singapore government property cooling measure is to ensure property price is affordable; target over speculation but not kill demand.

And how do you see the rental market for HDB flats evolving in the coming months?

Rental market for HDB flats will remain strong in the comming months as more foreigners are coming to Singapore to study or working. Rental price is also partly driven up by inflation.

kind Dolphin_7635 : In Singapore, there were in very few periods over the past decades that property price did went down. With the stable income increases over the years, whatever cooling measures the government and HDB put in, it can only slow down the price increase and unable to push it down. It's also not the intention to push price down as there's lessons learnt in China the past few years that destroyed consumer confidence on property purchase will be very hard to be repaired. Prices will continue to move up in a slower pace in the coming years.
Don't forget, with the relatively higher mortgage rates, purchasers might have slowed on their acquisition on property, but, there will be time that mortgage rate will come down and drive more demands few tears later.

With property price up and to maintain a reasonable returns for property owners, I don't see how rental can be cheaper, unless there are over supplies or slower demands. With the recovery from Pandemic, and the recovery of economic growth in the coming years, rental will certainly going up until government intervention will be there if the rental increases that might harm the economic growth in Singapore.

Kopikarp : The moderation measures introduced by the Singaporean government are likely to have a gradual, but significant, dampening effect on public housing resale prices. The 15-month wait-out period and the reduction in the loan-to-value limit to 80% will likely reduce speculative buying and over-leveraging, ultimately cooling down price inflation. While the impact might be slightly offset by the persistent housing demand, these measures will likely maintain a slower, more sustainable growth in public housing resale prices.

Further, macroeconomic factors like higher interest rates, alongside rising fees for foreign buyers, will also deter speculative investment. Higher interest rates mean larger costs for borrowing, reducing the attractiveness of real estate investment. For foreign buyers, higher transaction fees will make Singaporean properties less competitive compared to other markets, potentially causing a slowdown in demand. Both of these measures can contribute to a stabilization of prices, or even a slight downturn in the market, over the long term.

As for the rental market, these changes could catalyze an uptick in demand. As property purchases become less accessible, more potential buyers might turn to rentals. However, a balance might be struck with the introduction of a substantial number of new flats by HDB. A boost in supply can help meet the increased demand, ensuring rental prices don't surge uncontrollably. Overall, the rental market is expected to experience more activity but with a manageable increase in prices.

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