There is no bubble yet in the Singapore property market, said Minister Mentor Lee Kuan Yew.
http://www.propertyguru.com.sg/prope...le-yet-says-mm
The sharp price increases that have been experienced were "part of the total liquidity in the whole world system", said Mr. Lee, adding that foreigners still see properties as affordable and interest rates are still low.
"Even if we cap our excess, people in Hong Kong, Indonesia, will say, compared to what I have to pay, Singapore is cheap, let’s buy it," he said. "And apart from landed properties, they can buy into any condos."
Mr. Lee said the Singapore government is convinced that there is an underlying demand for residential property. "So it’s probably not a bubble yet."
He stressed that the Singapore government has taken measures to address concerns regarding the market overheating such as releasing more land to property developers and putting in place more stringent policies for homebuyers when borrowing from banks to acquire a property.
"More land is being released, to dampen the enthusiasm of everybody rushing for the latest release, and we’ve told the banks to be more prudent and have a higher downpayment," said Mr. Lee.
"These are the precautions we can take, but it does not stop the Indonesians or the Thais or the Malaysian Chinese or the Filipino Chinese from coming here and saying, ‘Compared to what I have to pay in my country, this is cheap’."