CURBS ON PRIVATE RESIDENTIAL PROPERTY MARKET

Mr Chng Hee Kok asked the Minister for National Development if he will review and deregulate the curbs on the private residential property market in view of the changing situation.

Mr Lim Hng Kiang: In view of the current economic downturn and the weak property market, the Government has implemented various measures to avoid exacerbating the oversupply situation and to stabilise the property market. It has stopped land sales for 1998 and 1999, suspended the premium for the extension of the project completion period, and allowed re-assignment of land sale sites.

Without compromising financial prudence, the Government has also relaxed or suspended some of the curbs on the property market implemented in May 1996. These include suspending the sellers' stamp duty for sale of housing units within 3 years of sale, and deferring the stamp duty payment for purchasers of uncompleted properties until Temporary Occupation Permit stage. The other measures have been retained for financial prudence and to prevent speculation.

The Government will continue to monitor the property market closely and make adjustments to property market policies when necessary.