MEASURES TO CURB RISE IN PROPERTY PRICES

MEASURES TO CURB RISE IN PROPERTY PRICES: 11.

Mdm Ho Geok Choo asked the Minister for National Development in view of public and private property prices continuing to rise unabated despite the

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recent measures implemented, what other measures does the Ministry intend to introduce.

The Minister for National Development (Mr Mah Bow Tan): Mr Speaker, Sir, the measures introduced in February this year and September last year were calibrated to encourage greater financial prudence among purchasers, temper exuberance in the market and pre-empt a property bubble from forming. They were not intended to stop prices from rising or to deter genuine home-buyers and investors from buying properties.

While the number of purchases of new private housing units has picked up in the first quarter this year, the rate of increase in prices of private residential properties has moderated. Overall, prices increased 5.6% in first quarter of 2010 compared to 7.4% increase in fourth quarter last year.

The latest data for public housing also shows signs of moderation. Resale prices registered slower quarter-on-quarter increase, and the median Cash-Over-Valuation (COV) has also stabilised.

The Government will increase supply to meet the strong demand. We have made available a total of 26 sites yielding about 10,500 private residential units as part of the first half 2010 Government Land Sales (GLS) programme. This was the highest from any half yearly GLS programme since the Reserve List system started in 2001.

We will inject an even larger supply of private housing in the second half 2010 GLS programme if demand continues to be strong. We will announce the details of the GLS Programme for the second half of 2010 by this June.

Similarly, since January 2010, HDB has launched about 5,100 public housing

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units. Another 7,400 flats will be launched from May to September. The total supply of new Housing and Development Board (HDB) flats for 2010 will be at least 12,000. If there is further demand, HDB is prepared to launch even more. HDB has also recently awarded two sites for executive condominium development in Sengkang and Yishun which, when launched, will provide buyers with household incomes between $8,000 and $10,000 more housing options.

The Government will continue to monitor the property market closely. We will implement additional measures, if necessary, to maintain a healthy and stable property market.