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Khaw Boon Wan: Strong demand for residential housing likely to continue

Posted by temasektimes on October 15, 2012

Despite a slew of cooling measures introduced lately, property prices are likely to continue to rise due to strong demand for residential housing, said National Development Minister Khaw Boon Wan.

Speaking in parliament today, Mr Khaw said residential property prices are stabilising, but Singapore is not yet “out of the woods”.

“From time to time, some buyers are prepared to pay way above market valuation but these are exceptional cases,” he said in response to a question fielded by PAP MP Foo Mee Har on the case of a flat in Queenstown which was sold for S$1 million.

The prices of HDB resale flats and private properties continue to grow, hitting a record high.

For private property, growth in prices slowed from 18 per cent in 2010, to 6 per cent in 2011, and to 0.9 per cent in the first three quarters of 2012.

Growth in the Yearly Resale Price Index (RPI) also dropped from 14.1 per cent in 2010, to 10.7 per cent last year, and to 3.9 per cent in the first three quarters of this year.

The Monetary Authority of Singapore had recently announced a 35-year cap on residential property loans, and also tighter loan-to-value limits for loans that exceed 30 years.


17 Responses to “Khaw Boon Wan: Strong demand for residential housing likely to continue”

  1. Alamak said

    In other wards $8-Man telling you no chance can buy forddable home. Price sure go up, more specially public housing. Only notchyet ask you all go JB can get cheaper
    one. But jest wait that advise sure come..

    • Angry Bird said

      another damn useless carp minister! millions of public $$$ down the drain. thank you very much 60% foolish S’poreans! Let’s see that your children’s children can’t even afford a roof over their heads and got to sleep at void decks, bus stops! Fools!

  2. Lim said

    There is simply a lack of political will to bring down public housing prices – period. Growth slowing down is not enough as prices are still shooting upwards since last election. Enough time has been given for the minister to introduce EFFECTIVE measures to prick the property bubble but for reasons unknown has not done so but resort to piece-meal action and continue to resort to excuses why the prices of HDB flats can’t come down. There should and must be a price correction as the flats are simply unaffordable.

    • Angry Bird said

      until today this idiot still refuses to give us the breakdown and actual construction cost per unit of HDB flat. kick him out please!

    • Not so much “a lack of political will to bring down public housing prices” as the firm political intention to keep inflating the bubble beyond comprehension or any pretence of safety. After all, doing so increases GDP numbers, balance-sheet numbers for Temasek-linked companies, and therefore salaries and bonuses for The Minister and His Cronies. We mere heartlanders are seen as a functionally inexhaustible supply of interchangeable parts for the moneymaking machine that is the famiLee business of this company town.

      It’s going to take the bubble bursting, followed by a couple of decades of post-PAP/WP Government before we even begin to recover. Are they trying to goad ordinary Singaporeans into emigrating?

  3. HDB for the masses said

    This is public housing built by the Govt using taxpayer’s money with the noble intention of providing a roof for Singaporeans.

    Seriously, if one can afford to fork out 1 million dollars to buy a HDB, he shouldn’t even be allowed to do so, it’s perverse. Go buy a private property please.

  4. Invictus said

    A 50 year housing loan will drive demand and price for public housing further.
    But If existing loan of 30 years is fueling demand, how does capping it to 35 years be a cooling measure to stop prices from spiraling ? Am I missing something here or it’s a half-hearted measure that is doom to fail just like the other earlier measures.

  5. Robin hood said

    The men in the picture behind him appear to be unwell, in a state of shock and disbelief at astronomical prices of PUBLIC flats. He seems to answer a question from a passerby , “oh, they are temporarily dazed, some completely blacked out. Not to worry they will recover, up on their feet and work like crazy to repay the mortgage on their new flats till their retirement 30 to 40 years from now. If they drop dead, the insurance will pay for the remainder loan so that their families will still have a roof over their heads. OK, NEXT question, please”, pointing to other passers by who stopped to listen.

    “can you tell us how the HDB arrived at such astronomical figures citizens have to pay for a new SUBSIDISED PUBLIC flat, just a space in the air?” another passerby asked. His answer would probably be , “nope, sorry, that’s official secret. You can work it out yourself though, but I don’t want to know….OK guys, got to go!”

  6. Pink Panty Loong said

    It’s not mainly strong demand. It’s due to your liberal housing policy. Stop bluffing us anymore. Even Hong Kong is restricting foreigners to buy their properties. It’s the greedy Pro-Aliens Party that is enjoying the benefits of the “strong demand” at the expense of its own citizens!

  7. Vote PAP Out said

    Excellent news for foreigners, Terrible news for you and me

  8. NBCCD said

    Now mosts of you know ,what you get in return for voting this P logo ? ho ? rocket sky high price for HDB plus this and that ! NBCCB ! GOT FACE TO SAY THIS SOMEMORE !! <>> SINGAPOREANS NEVER EVEN HAD THE CHANCE TO SEE THE SUNSHINE !? , WHAT TALKING YOU $ 8/- MAN ?? go jump down building la !

  9. dragon said

    What is call public housing? JOKER say demand demand and push up the prices.
    Not demand profit, high profit.

  10. goh said

    how cum Mah Bow Tan sooooo quiet now. Can anyone remember what MBT said, b4 the ast erections ? How can MBT get away with such a BIGGGG mistake ?? !!!

  11. singaporean deserved said

    i simply dont get it,why is public housing so damed expensive???

  12. P Koh said

    Just ask the Minister what is the cause which produced the run-away effect. If the government can remove the cause, the effect would be different.

  13. Naivety said

    Foreigners & PRs should not be allowed to purchase HDB Flats from the resale market…period!

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