By SG Proptalk (guest contributor)

The Total Debt Servicing Ratio (TDSR) framework, which aims to deter borrowers from accumulating too much debt, hit its one-year mark recently. The measure, together with the Additional Buyer’s Stamp Duty (ABSD), has hammered demand in the market. New home sales in the first five months of 2014 has plunged 52% to 3,894 units from the same period a year ago, according to fresh estimates from URA.

So is it an opportune time to review and make adjustments to the cooling measures that are currently in place?

NO, says our Ministry of National Development, as it is too early, given that prices have remained relatively stable despite decreased home sales. MND noted that private home prices have surged 60% during the most recent market upswing that began in mid-2009. Any premature removal of cooling measures could result in a sharp increase in demand and ...