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27 APRIL 2010
Question No. 372
Question by: Mdm Ho Geok Choo
Mdm Ho Geok Choo: To ask the Minister for National Development in view of public and private property prices continuing to rise unabated despite the recent measures implemented, what other measures does the Ministry intend to introduce.
Answer
1 The measures introduced in mid February 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 deter genuine home-buyers and investors from buying properties.
2 While the number of purchases of new private housing units has picked up in the first quarter 2010, the rate of increase in prices of private residential properties has moderated. Overall, prices increased 5.6% in first quarter of 2010 compared to the 7.4% increase in 4Q2009.
3 The latest data for public housing also shows signs of moderation. Resale prices registered slower quarter-on-quarter increase1, and the median Cash-Over Valuation (COV)2 has also stabilised.
4 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 1H2010 Government Land Sales (GLS) programme. This was the highest from any half yearly GLS Programme since the Reserve List system started in 2H2001.
5 We will inject an even larger supply of private housing in the 2H2010 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.
6 Similarly, since Jan 2010, HDB has launched about 5,1003 public housing units. Another 7,400 flats will be launched from May-Sep 2010. The total supply of new 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 EC development in Sengkang and Yishun, which when launched, will provide buyers with household incomes between $8,000 and $10,000 more housing options.
7 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.
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1 HDB’s 1Q2010 Resale Price Index (RPI) rose by 2.8% from the previous quarter, which is lower than the 3.9% increase in 4Q2009. (1Q2010 RPI scheduled for public release on 23 Apr 10)
2 The median Cash-Over Valuation (COV) amount for 1Q2010 has stabilized at $25,000, with only $1,000 increase from 4Q2009. In contrast, the median COV had doubled from $12,000 in 3Q2009 to $24,000 in 4Q2009. (1Q2010 COV scheduled for public release on 23 Apr 10)
3 Figure includes units launched at Apr 2010 BTO exercise (opened on 20 Apr 2010)
| Issued
by: |
Ministry of National Development |
| Date:
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27 April 2010 |
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