"There has been a rapid rise in housing costs in the
The Government has already doubled the registration fees to 4 per cent to check speculation and flipping while the
While both these measures have dampened the speculation in the property sector to a large extent, the huge amount of cash transactions have continued to lift the property valuations.
"These measures are good. I think it is time to consider stronger measures particularly in ways to discourage a quick turnaround," Ahmed said after presenting the IMF's regional economic outlook in
He suggested increasing the transaction fees further substantially to prevent any kind of speculative activity, citing Singapore's 30-percent tax on sales made within a year of purchase as an example.
"I think it is time to consider some stronger measures to try dampening what could possibly be speculative transactions in real estate," he said.
The market remains "mostly a cash market" for the moment, he said, warning that if lending to the sector sees a big increase, tightening measures would be needed.
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