Singapore shows Asia how to crack down on housing bubble

Singapore property curbs more effective than peers.

According to Bloomberg's report, Singapore, the city-state that banned chewing gum to curb litter, is showing the rest of Asia how to cool a housing bubble.

The government this year ramped up efforts to bring down property prices that surged to a record, adopting some of its strictest measures, including a cap on debt at 60 percent of a borrower’s income, higher stamp duties on home purchases and an increase in real-estate taxes.

The curbs are proving more successful than in neighboring Hong Kong and China where policy makers have experimented with a variety of initiatives to temper soaring housing markets. Home prices in Singapore had the slowest growth in six quarters in the three months ended Sept. 30. Sales declined and mortgage growth fell to 13 percent in July from 18 percent two years ago.

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