'Every likelihood' the Govt will reintroduce confirmed list of land sites, says Mah
THE Government is mulling over how much land to release for sale - a move industry experts see as a signal it is ready to act if the highly buoyant property market overheats.
National Development Minister Mah Bow Tan said yesterday there was 'every likelihood' the Government would reintroduce the confirmed list of land sites, which was suspended last October.
This is a list of sites tendered out on a fixed schedule, without preconditions such as developer expressions of interest.
'It's a question of how much we put on the confirmed list,' Mr Mah said.
He also said HDB resale prices will continue to rise this year by perhaps 1 per cent or 2 per cent in tandem with the recovery in Singapore's economy.
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.
'As far as (private home) prices are concerned, we want to make sure the property market does not become overheated, that there is no excessive speculation,' said Mr Mah.
'The Government is monitoring the market very closely. If there's any necessity, obviously we will take certain actions. One of the things we are looking at is the government land sales.'
The Government suspended the confirmed list last October when the property market was in the doldrums and Singapore slipped into recession.
'Now that the market is coming back, demand is coming back and the take-up is strong, there's every likelihood that we will resume the confirmed list,' the minister said.
Mr Mah was speaking to reporters at the launch of the final skybridge at Singapore's tallest public housing project, The Pinnacle@Duxton. It has 1,848 units, of which 111 are unsold.
Developer Kwek Leng Beng had said restarting the confirmed list could be used by the Government to cool the market.
Mr Mah's comments signal the Government is ready to step in if prices rise too sharply and more people are swept up in a panic-buying spree, said Ngee Ann Polytechnic real estate lecturer Nicholas Mak.
The move, however, will not have an immediate impact on prices, he said.
Said Savills Residential director Phylicia Ang: 'It's healthy for them to bring it back because some developers are running out of land.'
Some developers have recently done very well with the sales of mass-market to mid-tier projects, and are actively looking for new sites.
ERA's associate director, Mr Eugene Lim, noted that some of the demand in the HDB resale market is coming from buyers who have been forced out of the rising private homes market.
When asked about HDB resale prices, Mr Mah said they are likely to continue rising this year.
'Flat prices would probably go up, they will go up by 1 per cent, 2 per cent, or whatever,' he said.
'They will just keep on going up if the economy recovers as people expect, and if confidence returns, but affordability will always be there.'
HDB resale prices go up in tandem with a very strong market, but their movements will not be as volatile as private home prices, Mr Mah said.
Price rises have to be viewed from both sides as sellers naturally do not mind prices going up, he pointed out.
In the HDB market, resale prices are sitting at record high levels after climbing 1.4 per cent in the second quarter and about 35 per cent since 2007.
Indeed, HDB resale prices could rise by as much as 3 per cent this quarter on strong demand, going by the rise in the cash amounts that buyers are willing to pay over and above a flat's valuation, said ERA's Mr Lim.
Mr Mah said buyers of old flats are using on average about 25 per cent of their household incomes to repay their loans - which is still below the international affordability benchmark of 30 per cent - thanks to government grants.
His advice to buyers: 'Before you buy a property, you must remember three things - think, think and think... Think carefully, Think long term, Think about the unexpected.'
Source, Straits Times 3 Sep 2009
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