SUB-SALE OF PRIVATE PROPERTIES IN CENTRAL AND OUTER CENTRAL REGIONS

SUB-SALE OF PRIVATE PROPERTIES IN CENTRAL AND OUTER CENTRAL REGIONS: 7.

Mr Zaqy Mohamad asked the Minister for National Development (a) if he could provide an update on the sub-sale situation of private properties in the central region and the outer central region in the light of rising sub-sales compared to previous quarters of the year; (b) if there are policy gaps today to contain specu-investment; and (c) what measures are there to ensure that the property market remains healthy.

Mr Mah Bow Tan: Sir, there were 581 sub-sale transactions in the first quarter of 2007. This is about the same as that in the fourth quarter of 2006. Of the 581 transactions in the first quarter 2007, 368 or 63% were in the Core Central Region (CCR). This Core Central Region consists of Districts 9, 10, 11, the Sentosa area as well as the Central Area. Then, there were 156 sub-sale transactions or 27% in the Rest of Central Region (RCR) and 57 transactions or 10% Outside Central Region (OCR). The figures for the fourth quarter of 2006 were about the same,

in other words, 66% of sub-sales were in the CCR, 20% in the RCR and 14% in the OCR.

The higher level of sub-sale activity in the CCR compared to that in the RCR and OCR was due partly to the strong foreign interest in this segment of the property

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market. It is in line with the robust growth of our economy and reflects the confidence of foreigners and investors in the growth prospects of Singapore.

The number of sub-sales in the first quarter of 2007 is still lower than that in 1996, when sub-sales reached a high of 1,700 per quarter and accounted for up to 28% of all private residential transactions in a quarter. In comparison, sub-sales as a proportion of all private transactions in the first quarter of 2007 is 6.3%.

Sir, I want to inform Members that sub-sale activity is only one of the many indicators that the Government keeps track of to ensure that the residential property market is healthy and growing in a sustainable manner.

The Government also monitors the prices of private residential properties. Recently, there have been media reports which cited developers achieving record sale prices for their projects. While some of these high priced transactions do take place, I am concerned that such reports may not paint the full picture and as a result may mislead home purchasers. For example, such record prices could be for a few choice units with special attributes and not be representative of the transacted prices for most of the units in the project.

I have therefore asked URA to work with the Real Estate Developers' Association of Singapore (REDAS) to see how we can give a fuller picture of the range of transacted prices for all newly launched private residential projects. This will further improve the transparency and efficiency of the Singapore property market and help buyers and sellers make more informed decisions.

I want to assure Members that the Government will continue to monitor the

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property market closely. We will make sure that the market is as transparent as possible. Finally, we will ensure that there is a sufficient supply of land for private housing to meet the demand in the various regions through the Government Land Sales Programme.