The central bank in Singapore has warned potential investors that real estate values in the country are set to rise once again
, despite being generally accepted as already being too high.
Low borrowing costs and excess liquidity on a global scale mean that upward pressure will be applied to prices. The news will also come as a setback to the government in the country which has already had to introduce a number of cooling measures to the market in an attempt to bring it under control.
In August, the government increased down payments for second mortgages and imposed a stamp duty on property held for less than three years to curb speculation.
However, so far this does not seem to be having too much of an effect on the overheated market.
"There is a possibility that transaction activity and prices could pick up again given the current global conditions of flush liquidity and low interest rates. The government will continue to be vigilant in monitoring developments in the property market, and if necessary, adopt additional measures to promote a sustainable property market," the central bank added.
- Friday 03 December 2010