mr funny
12-02-07, 21:53
Singapore minister sees no property bubble, not even at high end of market
2/12/2007 4:40:00 PM
SINGAPORE (XFN-ASIA) - A property bubble is not forming here, not even at the high end of the housing market, despite a sharp rise in prices, Minister of National Development Mah Bow Tan told Parliament.
The government has said property prices increased by an average of 11.9 pct last year, but property analysts have said prices of upmarket dwellings have surged by as much as 50 pct, and market watchers are increasingly concerned that excessive speculation will cause a property bubble.
However, the government, citing the number of sub-sales seen in the fourth quarter of last year, says there are no signs of a property bubble. Mah said there were 426 sub-sales in the fourth quarter, 5.4 pct of all transactions during the quarter.
"Is there a property bubble forming? I guess if you look at the number of sub-sales, I would say there is currently no cause of concern," Mah said.
"Prices and take-up of private housing are only rising sharply in the core central region," he said. "In other parts of Singapore, the increase is steady and supported by a growing economy."
But Mah advised buyers to be cautious.
The minister said Indonesia's ban on exports of sand would have no significant effect on the construction sector here, given the government's stockpile and alternative sources.
"Several shipments of sand from alternative sources have arrived in Singapore early this month. We will work with the industry to diversify our supply sources," Mah said.
He did not say what these alternative sources are. Mah said that while the price of sand from these alternative sources would be higher because of higher transportation costs, the government had fixed the price of sand to ensure development projects remained on course.
"[The increase in the cost of sand] will only increase the overall project development cost by 1-3 pct," Mah said.
2/12/2007 4:40:00 PM
SINGAPORE (XFN-ASIA) - A property bubble is not forming here, not even at the high end of the housing market, despite a sharp rise in prices, Minister of National Development Mah Bow Tan told Parliament.
The government has said property prices increased by an average of 11.9 pct last year, but property analysts have said prices of upmarket dwellings have surged by as much as 50 pct, and market watchers are increasingly concerned that excessive speculation will cause a property bubble.
However, the government, citing the number of sub-sales seen in the fourth quarter of last year, says there are no signs of a property bubble. Mah said there were 426 sub-sales in the fourth quarter, 5.4 pct of all transactions during the quarter.
"Is there a property bubble forming? I guess if you look at the number of sub-sales, I would say there is currently no cause of concern," Mah said.
"Prices and take-up of private housing are only rising sharply in the core central region," he said. "In other parts of Singapore, the increase is steady and supported by a growing economy."
But Mah advised buyers to be cautious.
The minister said Indonesia's ban on exports of sand would have no significant effect on the construction sector here, given the government's stockpile and alternative sources.
"Several shipments of sand from alternative sources have arrived in Singapore early this month. We will work with the industry to diversify our supply sources," Mah said.
He did not say what these alternative sources are. Mah said that while the price of sand from these alternative sources would be higher because of higher transportation costs, the government had fixed the price of sand to ensure development projects remained on course.
"[The increase in the cost of sand] will only increase the overall project development cost by 1-3 pct," Mah said.