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Singapore unlikely to ease property curbs as election looms
- Developers have called on the government to loosen curbs as Singapore deals with a housing oversupply
- But analysts say relaxing these cooling measures could lead to higher property prices and may cost the ruling PAP votes
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Singapore is unlikely to ease property cooling measures as it heads into a high-stakes election that could take place in the first half of next year.
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Although several developers, including City Developments Ltd, have called on the government to loosen curbs to help fix an apartment glut, such a move could cost the ruling People’s Action Party votes. Relaxing property curbs risks sending prices spiralling, making it more costly for Singaporeans to own private flats, analysts say.
The city state is grappling with a housing oversupply that could take as long as four years to clear. There are almost 32,000 units – some finished, others under construction – in the pipeline. While home prices dropped after the latest round of cooling measures were imposed in July 2018, they have rebounded in recent quarters.
Relaxing curbs is “likely to be unpopular ahead of the upcoming general elections and could potentially spike up prices amid volatile market conditions in neighbouring countries”, said Vijay Natarajan, an analyst at RHB Research Institute Singapore Pte.
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“Any pre-election goodies are likely to be focused on the public housing segment where the government has already announced enhanced grants to support resale market prices.”
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