New property launches to fizzle out as election fever grips Singapore

Developers are still hoping for easing.

Prospective homebuyers will endure a dearth of new launches in the lead-up to Singapore’s anticipated General Election.

Analysts say that developers will do their best to delay new launches in the hopes that the newly-elected government will loosen their grip on cooling measures.

“With the General Election expected to be held before the year ends, developers will also be trying to delay launches, hoping that the authorities will loosen some measures that have gripped the property market,” Savills said in a report.

However, developers rooting for a policy easing may be in for a disappointment.

Barclays said that ministers have recently quashed hopes of a potential easing, stating that the government is still waiting for weaker prices.

For instance, Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam mentioned that the government is still taking a wait-and-see stance on the potential relaxation of property cooling measures. Meanwhile Minister of National Development Khaw Boon Wan commented that the market has not yet reached a more sustainable equilibrium.

“Ministers have [extinguished] hopes [of] relaxing property cooling measures in the near term with the General Election expected in September. While we expect further price falls in mass market housing, we believe we are closer to the end of the tunnel than a year ago. We remain constructive on developers,” Barclays said.