INCREASE IN PROPERTY PRICES

INCREASE IN PROPERTY PRICES

38.

Mr Calvin Cheng asked the Minister for National Development whether he can give an assessment of how much the recent increase in property prices can be attributed to foreign buyers.

Mr Mah Bow Tan: Foreigners' share of all sale transactions of private residential properties in Singapore is relatively small. In the first half of 2010, foreigners accounted for about 13% of all private housing purchases. Local buyers still make up the vast majority of purchasers of private housing in Singapore.

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. It is not due to any single factor, such as foreign buying.

The Ministry of National Development (MND) monitors the market closely to ensure that there is sufficient supply to meet the demand for private housing from both locals and foreigners. As at second 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 ramped up the supply of land for private residential developments via the Government Land Sales (GLS) Programme. In the second half of 2010 GLS Programme, we are making available sites that can yield about 13,900 private housing units, of which about 8,100 units will be from sites on the Confirmed List. 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 first half of 2011 GLS Programme if demand continues to be strong.

Column: 985