SG Property Cycle

I took a quick look at the Singstat which provides the Private Property Price Index over a 10 years period from 2003 to 2013. We could easily identify that the property was in the recovery phase from 2003-2006, boom phase from 2006-2007, with a slight slump in 2007-2008 and stabilised in 2008-2009. The market then began its next cycle of recovery from 2009. It was obvious that the industrial property was experiencing a rapid growth, unlike that of the residential which plateaued due to the government intervention.

There are several cooling measures that slowed down the property boom. This website has listed most of it. I have classified it into a few key areas which the government has been tweaking the system.

1. Additional Buyer Stamp Duty (ABSD) - increase hurdle for ROI
2. Seller's Stamp Duty (SSD) - reduce subsales
3. Loan to Value (LTV) limits - harder to borrow
4. Minimum Cash Down Payment - harder to buy
5. Total Debt Servicing Ratio (TDSR) - ensure financial prudence
6. Mortgage Servicing Ratio (MSR) - ensure financial prudence
7. PR / Foreigner restriction - restrict foreign investments
8. Minimum Occupation Period (MOP) rule - reduce multiple purchases

I think government intervention will have delayed repercussions from 2017 when the supply drops drastically.