New home sales in Singapore have shot through the roof recently. Resale prices of many popular projects have also risen from the lows early this year.
THE Government has stepped in to temper exuberance in the property market and preempt speculative bubble from forming.
With immediate effect, it will make it tougher for home buyers to borrow by disallowing interest absorption scheme and interest-only loans to prevent excessive speculation, National Development Minister Mah Bow Tan announced in Parliament on Monday.
This means that banks and developers will not be allowed to offer housing loans whereby the borrower only pays the interest and defers
repayment of the principal to a later date.
Mr Mah also announced that the Government will reinstate land sales through its confirmed list system and increase the supply of sites under the “reserve list”.
Sale of state land under the confirmed list was suspended for the first half 2009 Government Land Sales (GLS) Programme to help stave off oversupply risk as the property market here was then on a downtrend.
Instead, state land was only made available under the ‘reserve’ list system for the first half of the year. Continue reading
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