Increase in property prices due to combination of factors

Mr. Mah Bow Tan, Minister for National Development, has dispelled rumours that the recent increase in private property prices is a solely due to foreign buying.

Speaking in parliament on Monday, Mr. Mah said, “foreigners’ share of all sale transactions of private residential properties in Singapore is relatively small.

“In 1st half 2010, foreigners accounted for about 13 per cent of all private housing purchases. Local buyers still make up the vast majority of purchasers of private housing in Singapore.”
He also said the recent increase in private property prices is a result of a combination of factors, such as improved sentiments arising from the fast economic recovery and abundant liquidity in the economy.

He went on to stress that there is sufficient supply to meet the demand for private housing from both locals and foreigners.

“As at 2nd Quarter 2010, there were about 61,800 uncompleted private residential units in the pipeline which will be completed over the next few years. Of these, 32,600 units have not been sold yet.”

The government has also ramped up the supply of land for private residential developments via the Government Land Sales (GLS) programme.

In the second half 2010 GLS Programme, sites that can yield about 13,900 private housing units are in the midst of being made available. Of this 13,900 about 8,100 units will be from sites on the confirmed List.

Mr. Mah said, “this is the largest supply the Government has ever offered since the GLS Programme started in 1991.

“We will inject an even larger supply of private housing in the 1st Half 2011 GLS Programme if demand continues to be strong.”

Source : AsiaOne – 18 Aug 2010


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