i guess those not so rich ones now will target cheaper house prices now?

so high end property price drop, lower/medium end property price increase cos the not-so-big guns will play at a lower price range now.

there's no rule that say people that earn a lot of money cannot buy <350k house, right? so now 1 bubble is deflated and another 1 will be created elsewhere.

RPGT should have been an easier solution.

the cap of 70% could be counter productive to properties around the 350k

10% dp of 1mil house = 100k
30% dp of 1mil house = 300k
30% dp of 350k house = 105k

so if a person have around 100-110k cash in pocket and looking to buy a 3rd house, instead of not buying.. he/she will just buy a cheaper house. this move is just shifting the bubble. the high end market will definitely be affected. not everyone that buy 1 mil property may not be 1st or 2nd time house buyer and may not be cash rich, so a price correction might happen for high end property.

this move could potentially be counter productive and may defeat the original purpose. the solution is not as simple as introducing a LTV ratio of 70% cap. a realisticc price evaluation on a new development may be more realistic to equal the playing ground between new and subsale financing.

it will last till after the next GE at least