Market unlikely to be hit hard: Redas

Many developers seem to feel the new cooling measures will not have a big impact although those with more exposure to the local market could feel the pinch.

The response to yesterday's announcement from the Monetary Authority of Singapore (MAS) of the new rules was low key.

The Real Estate Developers' Association of Singapore (Redas) issued a statement saying that the cap "will not have significant impact on the property market".

"Based on past experience, not many buyers take long tenure loans," it said.

Mr Cheang Kok Kheong, chief executive of Frasers Centrepoint Homes, said: "We have always been supportive of the Government's measures aimed at curbing excessive speculative activities, as we believe in the importance of having a stable and sustainable housing market."

He said the move "is not expected to have a significant impact on the residential market".

A Keppel Land spokesman said: "We believe that there is still genuine demand for homes and well-located properties with good attributes should continue to see healthy sales."

Two other developers which declined to be named also said the new measure was not a big issue.

Far East Organization, City Developments, Hong Leong and CapitaLand declined to comment.

Consultants said the new rule to cap mortgages at 35 years could hit sales as investors and those who are stretching themselves financially will likely stay away from the market.

Source: The Straits Times – 6 October 2012