It has been just less than two months since the most recent and extensive round of cooling measures were implemented on 12th January 2013. Despite the initial shock and awe across the island, it appears from January’s transactional activity that the market is increasingly resistant to cooling attempts. We expect this to continue given that residential property vacancies are low at 5-6% islandwide, jobs figures remain healthy, and loan interest rates are set to stay low till at least end-2014.
To be sure, January’s data cannot be taken at face-value. While transactional volumes hit record levels, with new home sales hitting 2,013 units, several market analysts have pointed out that the bulk of these numbers were clocked in prior to the cooling measures taking effect. For instance, star-performer for the month, 810-unit La Fiesta brought forward its launch date and extended sales operating hours the night before the cooling measures kicked in, clocking in 404 units in January, of which an estimated 90% were deals closed prior to the measures. Continue reading “The 7th Property Cooling Measures: Further Tweaking Required?”