reporter2
22-10-11, 19:09
http://www.businesstimes.com.sg/sub/news/story/0,4574,461293-1319140740,00.html?
Published October 20, 2011
Not time yet to remove cooling measures: Khaw
(SINGAPORE) National Development Minister Khaw Boon Wan yesterday said that it is not time yet to remove property cooling measures and that the government will continue to release land to meet private housing demand.
In a speech in Parliament, he noted that private housing currently makes up 23 per cent of Singapore's housing market and meets the upgrading aspiration of higher-income Singaporeans, besides housing the permanent residents and foreigners who come here to work and live. 'URA will continue to release land parcels to meet the demand.
'Four rounds of cooling measures have also had their effect. There have been some calls for their removal but I don't think it is time yet. The global economic uncertainties have also tempered exuberance,' he said.
Urban Redevelopment Authority's latest flash estimate released earlier this month showed that the escalation in the private home price index has moderated for eight consecutive quarters. The 1.3 per cent quarter-on-quarter rise in the index in Q3 2011 was the lowest rate of increase over the past two years. 'We will continue to monitor market conditions closely, and if need be, we will take further measures,' Mr Khaw said.
The government has rolled out four rounds of measures - between September 2009 and January 2011 - to cool the private housing market. Standard Chartered Bank property analyst Regina Lim does not believe that further cooling measures will be announced. 'At this point in time, a lot of people who are buying are not speculators. They are buying for investment or their own occupation. How do you stop them?'
However, Ms Lim argues that it is not time to remove the existing cooling measures either because interest rates are still low. 'Interest rates of about one per cent on home mortgages, for a country with 5 per cent annual GDP growth are distorting people's behaviour and making them buy more housing. Unless we have a nominal interest rate of about 3.5 per cent, we still need the cooling measures,' she added.
But Ms Lim predicts that the supply of private housing land that the Ministry of National Development will release under the confirmed list in the first half 2012 Government Land Sales (GLS) Programme may ease, perhaps to about 3,000-4,000 private homes (including executive condos), after three consecutive rounds of half-yearly land sales programmes for about 8,000 private homes since H2 2010. 'This would have made up sufficiently for the undersupply in the past 10 years,' she reasoned.
Credo Real Estate executive director Ong Teck Hui does not expect the government to remove the present cooling measures or reduce the quantum of confirmed list land sales for H1 2012 given that private home prices have not come down and developers' sales are still strong.
URA figures released earlier this week show a rebound in developers' private homes sales in September. They sold 1,631 private homes, excluding ECs, last month, up 20.7 per cent from August. Including ECs, the September sales volume rose 25.8 per cent month on month to 2,064 units.
'The authorities would probably adopt a more prudent approach of adjusting the GLS Programme if the economy deteriorates rather than to pre-emptively reduce the quantum now,' said Mr Ong.
Published October 20, 2011
Not time yet to remove cooling measures: Khaw
(SINGAPORE) National Development Minister Khaw Boon Wan yesterday said that it is not time yet to remove property cooling measures and that the government will continue to release land to meet private housing demand.
In a speech in Parliament, he noted that private housing currently makes up 23 per cent of Singapore's housing market and meets the upgrading aspiration of higher-income Singaporeans, besides housing the permanent residents and foreigners who come here to work and live. 'URA will continue to release land parcels to meet the demand.
'Four rounds of cooling measures have also had their effect. There have been some calls for their removal but I don't think it is time yet. The global economic uncertainties have also tempered exuberance,' he said.
Urban Redevelopment Authority's latest flash estimate released earlier this month showed that the escalation in the private home price index has moderated for eight consecutive quarters. The 1.3 per cent quarter-on-quarter rise in the index in Q3 2011 was the lowest rate of increase over the past two years. 'We will continue to monitor market conditions closely, and if need be, we will take further measures,' Mr Khaw said.
The government has rolled out four rounds of measures - between September 2009 and January 2011 - to cool the private housing market. Standard Chartered Bank property analyst Regina Lim does not believe that further cooling measures will be announced. 'At this point in time, a lot of people who are buying are not speculators. They are buying for investment or their own occupation. How do you stop them?'
However, Ms Lim argues that it is not time to remove the existing cooling measures either because interest rates are still low. 'Interest rates of about one per cent on home mortgages, for a country with 5 per cent annual GDP growth are distorting people's behaviour and making them buy more housing. Unless we have a nominal interest rate of about 3.5 per cent, we still need the cooling measures,' she added.
But Ms Lim predicts that the supply of private housing land that the Ministry of National Development will release under the confirmed list in the first half 2012 Government Land Sales (GLS) Programme may ease, perhaps to about 3,000-4,000 private homes (including executive condos), after three consecutive rounds of half-yearly land sales programmes for about 8,000 private homes since H2 2010. 'This would have made up sufficiently for the undersupply in the past 10 years,' she reasoned.
Credo Real Estate executive director Ong Teck Hui does not expect the government to remove the present cooling measures or reduce the quantum of confirmed list land sales for H1 2012 given that private home prices have not come down and developers' sales are still strong.
URA figures released earlier this week show a rebound in developers' private homes sales in September. They sold 1,631 private homes, excluding ECs, last month, up 20.7 per cent from August. Including ECs, the September sales volume rose 25.8 per cent month on month to 2,064 units.
'The authorities would probably adopt a more prudent approach of adjusting the GLS Programme if the economy deteriorates rather than to pre-emptively reduce the quantum now,' said Mr Ong.