SINGAPORE (EDGEPROP) - While the Singapore economy is going through its most severe downturn since Independence, the property market has remained stable, “thanks in part to the macroprudential measures in place and new temporary relief measures in response to Covid-19,” says Ravi Menon, managing director of the Monetary Authority of Singapore (MAS) in a virtual media conference on July 16.
Urban Redevelopment Authority private residential property price index corrected 1% in 1Q2020 and according to the flash estimates, is expected to correct by another 1.1% in 2Q2020 (Photo: Samuel Isaac Chua/EdgeProp Singapore)
According to Menon, the property cooling measures — progressively implemented over the last 10 years — have helped temper price increases, bringing prices more in line with underlying economic fundamentals. “The stabilisation of the property market has substantially reduced its vulnerability to the Covid-19 shock,” he says. “If property prices had been rising rapidly as we entered the Covid-19 crisis, we could have seen a sharp and painful correction.”
Instead, the Urban Redevelopment Authority (URA) private residential property price index corrected 1% in 1Q2020 and according to the flash estimates, is expected to correct by another 1.1% in 2Q2020. Hence, the adjustment of the property market has been modest, says Menon. “Property prices have moderated in an orderly manner in recent months.”
As such, “there is no need to adjust the existing cooling measures” at this point, adds Menon. However, to help promote market stability, the government has provided temporary relief measures for buyers and property developers by extending regulatory and tax deadlines. These reliefs do not alter the existing cooling measures.
“MAS, together with the Ministry of Finance, the Ministry of National Development and the URA, will continue to watch the market closely to ensure that prices for private residential properties remain broadly in line with economic fundamentals,” says Menon.
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