Prices of personal homes are generally sliding for 3 years nevertheless the property air conditioning measures will be here to stay for the time being, said Nationwide Development Minister Lawrence Wong.
Flash estimations showed that prices chop down 1 . a few per cent in the third one fourth from the second – the steepest quarter-on-quarter drop in seven years.
That notable the 12th consecutive one fourth of drop, and remaining overall non-public home prices 10. almost eight per cent cheaper from the third quarter of 2013.
Nevertheless Mr Wong, who took over the Nationwide Development profile a year ago, informed The Straits Times a week ago: “It’s less though there exists a price point that we state, ‘(It) lowered by this % already, therefore I can change the measures’… We look at the wider considerations. inch
Various air conditioning measures, such as the additional potential buyer’s stamp obligation and financial loan curbs, which have been implemented in the last few years include weakened demand for new homes and delivered prices dropping.
Mr Wong said the measures were introduced not to put a lid upon prices, nevertheless also “in response to an extremely unique global context and environment” notable by time consuming growth, really low interest rates and liquidity looking for higher produce.
“If and once capital inflows come, whether it is from regional or international sources, it is extremely easy to cause fluctuations within our property marketplace, and we do want that to happen, inch said Mr Wong, who may be also Second Minister just for Finance.
He added that “we do want to be a nation of property speculators”.
Taking into account the global outlook, the external environment and home-based situation, the federal government has evaluated that the air conditioning measures are necessary to keep the house market “stable and sustainable”.
An analyst told The Straits Situations that the cumulative dip in prices of 10. almost eight per cent probably would not seem not too young for the federal government to act, considering the fact that prices flower 62 % from the second quarter of 2009 to the third quarter of 2013.
What would be more pertinent is the pace on the fall. Should the pace of decline begin to accelerate, state by a lot more than 1 . a few per cent every quarter, this could push the Government to gradually ease measures, he added.
While relaxing some measures could help spur the real estate market and in turn support economic growth, Mr Wong said any move to use the property sector to stimulate the economy must be weighed against the cost and risk.
He noted that there is still a relatively strong underlying demand for property and that buyers and investors have become more selective – favouring good locations and competitive pricing, going by the response to recent condominium launches.
“That’s not a bad thing because you want people to be more conscious and more thoughtful about their property purchases… and don’t think of property as a sure bet, ” Mr Wong said.
He also pointed out that the 21, 500 or so unsold and uncompleted private homes as at the second quarter was the lowest on record.
Meanwhile, there were a further 5, 471 unsold and uncompleted executive condominiums – the lowest number in two years.
Mr Wong added that the Government will continue to maintain a steady stream of sites by offering more of them on the reserve list, coupled with a few on the confirmed list under its land sales programme.