Hi,
1) My opinion is you have to look at least at 2 important indexes whether cooling measures will be implemented; GDP growth and Property Price Index (PPI).
2) From the news we already know that 2022 GDP growth will be kept at ~4% now, if the PPI is going to rise sharply over the govt threshold, a cooling measure will be expected.
3) On top of that another side factor you can look into are the number of successful en-bloc and the winning bidding price. This is another important factor to consider whether the market is brewing hot.
4) Govt will ensure the PPI growth is healthy but not too hot to over-run the GDP growth. This is to ensure no property bubble is created.
5) You have to understand that the cooling measure is not to crash the market but maybe a soft landing. However, we only see that the implementation of the cooling measure in 2018 slowed down the PPI growth and number of transactions.
6) This means buyers are unable to leverage more on the bank but have to fork out more capital in order to upgrade or invest.
7) Future cooling measures should be focused on this area. Do note that it is a common trend to fork out a 30% down payment for a property purchase in Asia. And we are still at a 25% down payment, thus an additional 5% reduction on leverage is not a surprise move.
Hope the above answer your main concerns, but if there are more query, please feel free to contact me at
90110636
, or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.
Best regards
Ling CK
90110636
ling.ck7@gmail.com
https://R056727F.propnex.net/
https://www.facebook.com/Homesellerbuyer
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