At least one real estate agency thinks the immediate reaction to the latest cooling measures will be a slowdown in the private property market.
CEO of PropNex Realty Mr Mohamed Ismail said he expects a price correction of approximately 15 to 20 per cent in the central core region and a correction of 10 to 15 per cent in the mass market segment in the next six months.
PropNex also expects transaction volume to dive by as much as 40 per cent in the core central region and by as much as 20 per cent in the mass market segment.
Under the latest changes, foreign buyers of private properties in Singapore will now have to fork out 10 per cent more in stamp duty while permanent residents and Singaporeans are also affected with an increased stamp duty on their second and third properties respectively.
PropNex said the new measures could have been targeted to preserve affordable pricing in the mass market segment – homes costing less than S$2 million where prices have surpassed S$1,000 psf.
It argues that having a blanket policy will impact the high-end market which has been the investment interest of the foreign buyers.
As part of its continuing outreach efforts to educate the public on financial literacy and retirement planning, the Central Provident Fund (CPF) Board launched its ‘Are You Ready’ initiative today. The ongoing initiative aims to encourage Singaporeans to kick-start their financial and retirement planning through a variety of tools, talks and games.
A set of checklists for each of the four themes – Cash Flow, Healthcare, Housing and Retirement – are available at http://www.areyouready.sg. These were developed in consultation with partners: MoneySENSE, the Association of Financial Advisers, the Financial Planning Association of Singapore, the Life Insurance Association and the Insurance and Financial Practitioners Association of Singapore. The checklists will help Singaporeans assess their basic financial understanding and readiness for these key financial decisions. Customised tips and resources will help users further improve their financial literacy and understanding towards the importance of building a secure retirement. The checklists are also available island-wide in hardcopy at the five CPF Service Centres, community centres, and public libraries. They will also be distributed at talks organised by the CPF Board. Details of the four themes are in Annex A.
For Singaporeans who prefer offline channels and platforms, the CPF Board has lined up a series of talks in English and Mandarin based on the four themes. More than 100 talks will be organised, reaching out to 30,000 Singaporeans annually. Details of the talks in October 2011 are available in Annex B.