1. History repeats itself. Bull markets are always met with cooling measures, so there’s no need to panic. For context: there have been 16 major cooling measures in the past 24 years.
2. In the long run, this is a positive development. It smooths out periods of excessively rapid growth, squeezes out bubbles, and stabilizes market fundamentals.
3. The rising costs of land, labor, and taxes will ultimately be reflected in property prices. The Singapore real estate market lacks the fundamentals for a significant decline (though other asset classes may not), making property one of the best assets for the average person to hedge against inflation.
4. Market transaction volumes may decline for one to two quarters, but the market will eventually adapt and get accustomed to the new policies.
5. The US Federal Reserve has committed to raising interest rates, with officials predicting at least three hikes next year. These new cooling measures will help reduce household debt risk in the market.
6. A brief window of investment opportunity often appears after each cooling measure. Ultimately, successful investing relies on foresight, mindset, perspective, and integrity.
7. Investment by foreigners in Singapore property is being curtailed, creating more opportunities for Singapore Citizens and Permanent Residents (PRs) purchasing for their own stay. First-time homebuyers should now have more peace of mind!
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