Redas calls for calibrated government land sales

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http://www.businesstimes.com.sg/arch...sales-20131102

Published November 02, 2013

Redas calls for calibrated government land sales

Land supply should be at a pace that would contribute to the overall health of the market

By Mindy Tan [email protected]


CHALLENGES in the real estate market continue to worry association members, said Chia Boon Kuah, president of the Real Estate Developers Association of Singapore (Redas), at its 54th annual dinner last night.

"Against a backdrop of market volatility and a maturing real estate cycle, we have had to manage the unfolding effects of the government's seventh round of cooling measures, and the introduction of the total debt servicing ratio.

"The substantial physical supply of real estate coming onstream, especially with the completion of projects presently under construction, and the expiry of the lock-in period of the seller's stamp duty, from now to 2017, continues to weigh on our mind."

It is Redas's hope that the government would calibrate its land sales programme to ensure land supply is injected at a pace that would contribute to the overall health of the market, said Mr Chia, who reaffirmed Redas's commitment to work closely with the government to plan for the various scenarios that the market might take.

National Development Minister Khaw Boon Wan also acknowledged the efforts of private developers in a video screened at last night's event, which was themed "Partnership in Nation Building". Noting that developers have been a strong partner in helping develop the nation, Mr Khaw said that "developers can justifiably be very proud of their contribution to the transformation of Singapore city".

"But, a lot of work lies ahead, and I look forward to our continuing partnership," he said.

Conceding that the tight labour situation is a key challenge for the sector, Mr Khaw believes that the only sustainable strategy is to increase productivity.

"In particular, developers can incentivise and actively work with their consultants and builders to adopt more productive construction methods," said Mr Khaw, in the Redas 54th Anniversary commemorative booklet.

Separately, Redas said that the Redas Foundation, a charitable fund managed under the Community Foundation of Singapore, will raise funds for community programmes and activities run by charities here to help the needy, in particular the children and the elderly.

Redas will donate $100,000 each to the Arc Children's Centre, an organisation that gives care and support to children with serious illnesses, and the Alzheimer's Disease Association.

Mr Chia, who was elected president of Redas last year, will have to relinquish his post when he leaves Far East Organization next year, given that membership of the management committee is tied to the company and not the individual.

Following his resignation as Redas president on his last day at Far East, the Redas management committee can appoint a replacement for the remainder of the term.

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http://www.straitstimes.com/archive/...-hand-20131102

'Real estate market needs Govt's steady hand'

Head of property developers' body makes call amid land supply concern

Published on Nov 02, 2013

By Melissa Tan


THE head of the property developers' industry body yesterday called on the Government to ensure the market remains healthy.

He said developers have been feeling the pain of recent property curbs and the threat of a supply overhang, but are working to boost productivity.

"It is our hope that the Government will calibrate its land sales programme to ensure land supply at a pace that will contribute to the overall health of the market," said Mr Chia Boon Kuah, president of the Real Estate Developers Association of Singapore.

Speaking at the association's 54th anniversary dinner at the Ritz Carlton Millenia hotel, Mr Chia said the Republic is in a "maturing" real estate cycle and developers are concerned about a bumper crop of new supply.

However, he added: "We have faith that the Government will continue to monitor the movements in Singapore's property cycle, and ensure a balance between development viability and housing affordability."

Minister for National Development Khaw Boon Wan was guest of honour. He did not give a speech.

The property market has been subdued in recent months owing to several rounds of cooling measures and tough restrictions on home loans that were imposed in late June.

Even so, bid prices at state land tenders have been bullish in recent months. Private home prices have also continued to creep up, though some developers slashed prices at new launches in September to boost sales.

Mr Chia said that "as long as homes are purchased with sound reasoning, we believe in riding out each cycle that comes our way".

He added that the association was committed to working closely with the Government to plan joint responses for various scenarios that could arise from changes in the domestic and global environment.

A bumper crop of up to 700,000 new homes will be built by 2030.

Another priority, he said, was the real estate and construction industry's long-term sustainability, noting that local developers are taking steps to improve productivity.

The real estate and construction industry employs about 20 per cent of the active workforce. It has been feeling the pinch from tightened foreign labour inflows, which result in higher manpower costs.

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