Property analysts are expecting policy shifts on HDB flats and mass market private homes, with the appointment of Mr Khaw Boon Wan as the new National Development Minister.
They say Mr Khaw is known to be an effective game changer.
With housing affordability as a hot-button topic during the elections, the analysts foresee Mr Khaw as being forceful on this issue, at least early on.
Terence Wong, research co-head at DMG & Partners Securities said he would not be surprised if Mr Khaw shows determination to make housing more affordable for the young.
Colin Tan, research and consultancy director at Chesterton Suntec International, said Mr Khaw has his ‘work cut out for him’.
‘PM Lee did say that the changes will allow for a fresh slate that will look at everything from scratch, so it’s possible that Mr Khaw will look towards reshaping and rethinking policies,’ he added.
The Government may overhaul other policies – including its immigration policy – to prevent a further run-up in prices and to cater to the increasingly squeezed middle class, analysts say.
The aim will be to ensure prices rise – or fall – in line with general economic growth, with a focus on the HDB and mass market segments to ensure affordability, they add.
The Government had already pledged to review the $8,000 income ceiling for buying HDB flats – unchanged for the past 17 years for first-timers.
Nicholas Mak, SLP International research head said that the Government is unlikely to introduce sweeping measures that would cause a price slump as this would unfairly penalise sellers in the resale market.
However, it might look to bring down prices of new build-to-order HDB flats so as to draw demand away from the resale market and stem further price gains.
Last year, private home prices rocketed 17.6 per cent, while HDB resale prices surged 14.1 per cent, upsetting first-time home owners priced out of the market.
Chesterton’s Mr Tan added that policies focused on helping the middle-income group satisfy their housing aspirations are also likely as the middle class represents ‘mainstream Singapore’.
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