First-time property buyers are 'exploiting a legal loophole': analyst

It boosted demand for new launches.

According to CIMB, while resale transactions in the property market have tapered off following the recent property cooling measures, new launches continue to rack up robust sales as property developers dangle discounts to maintain buyer interest.

The firm added that the latest property curbs do not target first time home buyers, and that this group is unlikely to be affected by any future policies.

CIMB also said that the emergence of first-time buyers exploiting the said legal loophole has helped prop up demand for new launches.

"If transaction volumes continue to keep up, we may see additional cooling measures. These include a potential cap on mortgage/debt servicing ratios and tweaking mortgage risk weights in the footsteps of Hong Kong," CIMB added.