Interestingly, after my post on 25 Sep 12, the government came up with the 6th round of cooling measure.
The two measures are as follows:
- Mortgage tenures limited to 35 years.
- Lower loan to values on loans over 30 years.
In my opinion, i think MAS (or the government) will continue to watch the market closely and do whatever it takes to cool the market in order to avoid a property bubble.
A graphical view of the cooling measures from the Morgan Stanley report.
The new measures are pretty interesting because it seeks to stop people from buying their 2nd or 3rd investment properties. It is trying to ‘curb’ the demand. Below is the graphical view of the “decision making tree” of the latest measure from Kim Eng.
I will not rule or further government measures should the prices continue to spiral out of control. However, the latest measure would …