http://www.businesstimes.com.sg/arch...stainable-khaw

Published July 11, 2012

IN PARLIAMENT

Property market stable and more sustainable: Khaw

ABSD, increased supply have produced results


THE property market is "moving towards a stable and more sustainable path" following rounds of cooling measures, but the government remains ready to take further action should the situation call for it, said National Development Minister Khaw Boon Wan.

There "are positive signs that the market is moving towards a stable and more sustainable path", said Mr Khaw, adding: "We continue to monitor the market closely, and remain ready to revise and enhance the policy, if and when the situation demands it."

He made these comments in a written response to a question from Nominated Member of Parliament Tan Su Shan.

Ms Tan had asked what the measures of success for the Additional Buyer's Stamp Duty (ABSD) were, and how the policy has helped the middle or low-end of the housing market.

In his reply, Mr Khaw said that measures, such as the ABSD and the ramp-up in both public and private housing supply, have produced "encouraging results".

For one thing, the proportion of private residential properties bought by foreigners and companies has "fallen sharply" to 7 per cent in the first six months of this year, from last year's 20 per cent.

Then there are private home prices, which Mr Khaw said have "moderated significantly", rising by 0.3 per cent in the first half of the year compared with the 6 per cent increase for the whole of 2011.

Short-term property speculation has also fallen sharply, as indicated by the relatively low volume of sub-sales.

Home buyers, including those in the middle and low-end of the market, have benefited from the cooling measures, added Mr Khaw.

"For mass-market private housing outside the Central Region, prices have moderated with a slower pace of increase of 0.4 per cent in Q2, compared to the 1.1 per cent increase in the previous quarter," he said.

"For the public housing market, the significant ramp-up in new flat supply has given most first-timers a chance to select a BTO (build-to-order) flat if they apply for one."