Tag Archives: National Development Ministry

Govt will look out for all homeowners

Future housing policies will take into consideration all homeowners, not just new ones, Senior Parliamentary Secretary in the Ministry of National Development Dr Mohamad Maliki said at the second “Our Singapore Conversation on Housing” session held yesterday (May 8).

Dr Maliki stressed that existing homeowners’ interests will be considered even as changes to public housing policy are being discussed, noting how prices of new Build-To-Order (BTO) flats could have an impact on the resale market.

“How we manage the property market will have an impact on current home owners and we should not forget that because when we talk about prices of new flats, at some point, the behaviours of buyers will move in a certain direction and there will be impact on the resale market,” cautioned Dr Maliki.

The participants, who numbered more than 50, were also joined by Member of Parliament for Pasir Ris-Punggol GRC Penny Low, who sits on the National Development Government Parliamentary Committee (GPC).

Topics discussed at yesterday evening’s session included whether the Executive Condominium and Design, Build and Sell Scheme should continue, whether the range of public housing currently available is adequate, and if the income ceiling for the purchase of BTO flats should be raised or possibly even removed.

Responding to calls by participants to remove the income ceiling for the purchase of Build-to-Order (BTO) flats, Dr Maliki acknowledged the complexity of housing all Singaporeans while meeting all aspirations and expectations.

“With (housing) 100 per cent, there will be more complexities because groups of people want different things and so that diversity is also something we have to consider,” said Dr Maliki.

Source – Today – 9 May 2013

Property prices worry National Development Minister

National Development Minister Khaw Boon Wan on Thursday sounded the alert on the spike in property prices in his latest blog posting.

He said things can go very wrong suddenly and gave three reasons.

Firstly, 35,000 private homes have already been sold – though still in construction – with payments in various stages of completion.

And there are 45,000 units in the pipeline, waiting to be built and sold.

Secondly, URA on Thursday announced its Government Land Sale Programme for the second half of the year which will inject another 8,000 private residential units into the market.

Together with committed investments, some 53,000 units will be looking for buyers over the next few years.

Lastly, Mr Khaw said the external situation is not exactly bullish.

The European sovereign debt crisis will take a long time to clear.

The Middle East crisis can still go ugly.

If that leads to a spike in oil prices and halts the fragile global economic recovery, the impact on Asia and Singapore will be direct and immediate.

Moreover, foreign buyers of these properties have been strong.

In the recent quarter, they made up 16 per cent of all buyers of these private properties.

Many Singaporeans also buy properties with the intention to rent them to foreigners who come here to live or work.

In the event of any external shock, both foreign demand and rental demand can fall quite quickly.

Mr Khaw said the impact can be serious if the drop in demand happens at a time when there is a substantial increase in supply.

Further, low interest rates will not remain so forever. Cost of borrowing and repayment must go up and households must factor this in.

Mr Khaw said he’s not the only one worried.

He cited a property analyst who recently said some property investors seem either “blissfully ignorant” of the massive supply that will hit the market from 2013.

Mr Khaw said market correction or any crash is not a given.

If all goes well, the economy will continue to grow and those who bought properties here will enjoy good returns when their units are completed in the next few years.

But no one is immune to mishaps.

With so much uncertainties, the Minister advises investors and upgraders to bear these considerations in mind when they go to show rooms and contemplate if they should sign up.

Source : CNA – 9 Jun 2011