Singapore’s once-bubbly property market has been stabilizing in the wake of a slew of cooling measures, the city-state’s central bank chief said.
“The measures that have been taken have — with each passing month and quarter I think we can say with a little more confidence — made a fair amount of progress towards stabilizing the market,” Ravi Menon, managing director of the Monetary Authority of Singapore (MAS), said at the UBS Wealth Insights conference in Singapore on Monday.
“[Policymakers] are very conscious, deeply conscious, that we don’t go back to the situation that we had before, because a bubble is an extremely difficult thing to deflate gently,” he said.
Singapore’s property prices surged more than 60 percent from 2009 through 2013, propelled by rock-bottom global interest rates and quantitative easing in developed economies that followed the global financial crisis, even as the city-state’s government enacted a series of cooling measures to prevent a bubble from forming.
From 2011, Singapore’s government imposed a series of cooling measures, including an Additional Buyer’s Stamp Duty, which adds much as an additional 15 percent to the purchase price for foreign buyers and Singaporeans with more than one property.
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