Colin Tan: Cooling measures in danger of losing credibility

[Confuseous]

Although it is still early days, many property market watchers are coming to the conclusion that the latest round of Government cooling measures - curbing the tenures of home loans - is having little or no impact.

Some have described them as "very disappointing". Even the knee-jerk reaction that accompanied the previous rounds of cooling measures was missing.

There is no lack of infrastructure projects planned for the country right now. Just the construction of the various rail lines criss-crossing the island alone would generate sufficient bonds.

As for the hefty subsidy, is this not a matter of money coming out of one hand and going into the other? Take it as Singaporeans financing their own infrastructure projects. The subsidy may also be worth paying if it prevents the damage a severe real estate market crash can have on our economy.

In any case, the subsidy is for a short period of time. Or don't the authorities believe it themselves when they say that the low interest rate environment is unsustainable in the long run?

- http://www.todayonline.com/Commenta...ling-measures-in-danger-of-losing-credibility

 

[mojito]

Colin Tan is Head of Research & Consultancy at Chesterton Suntec International