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Fewer transactions indicate property cooling measures working: Redas

Friday 11 February 2011

SINGAPORE - The Real Estate Developers' Association of Singapore (Redas) said yesterday the latest round of property cooling measures introduced last month had stabilised the market.

"There's a drop in volume, but I think that's expected because of hesitation and uncertainty," said Mr Lim Ee Seng, first vice-president of Redas, at the association's Spring Festival reception.

Saying that buyers and sellers would need a bit more clarity before making their next move, he noted that "properties that were launched after the measures still had a very decent take-up".

"That clearly demonstrates that there's a pool of people who are genuinely in need of properties," he added.

Analysts pointed out that the volume of transactions in the suburban market had tapered off.

But they added that interest and liquidity for the high-end market was still pretty high, even though foreign money flowing in might ease off from levels hit last year.

Mr Eric Tan, chief executive of real estate consultants GSK Global, said: "I can foresee that with the introduction of higher interest rates in China, the liquidity in Singapore is going to be affected and I believe not as much funds will flow into Singapore as compared with the past."

However, Redas said it remained optimistic and expects $12 billion to $14 billion in property investments this year.

Source: Today