The new measures announced by the Government to tighten housing loan rules are expected to prevent excessive speculation in this somewhat heated market.
“Overall, this is a timely measure on the Government’s part,” shares PropNex CEO Mohamed Ismail, referring to the announcement by national development Minister Mah Bow Tan on Monday, 14 September 2009.
“While no one can say with certainty that there is excessive speculation taking place now,” he continues, “the removal of the Interest Absorption Scheme (IAS) will ensure that buyers are ready to commit to a mid- to long-term view, with the ability to finance their investment during the construction stage, despite having no rental income.
He says that these steps are good news for serious buyers and investors as these measures have been taken before any bubble started forming.
“These new measures should not affect serious buyers,” reassured Mr Ismail, “as developers often mark up the selling price for those taking up the IAS by 2–4%. Without IAS, therefore, buyers can expect to pay lower prices for their investment.”
For enquiries, please contact:
Mohamed Ismail (CEO) 9487 1414
Adam Tan (Corporate Communications Manager) 9006 8726