Khaw Boon Wan: Strong demand for residential housing likely to continue
Posted by temasektimes on October 15, 2012
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.