Tuesday, November 22, 2011

Singaporeans advised to be prudent when purchasing property

Minister for National Development Khaw Boon Wan said Tuesday that Singaporeans should be prudent when purchasing property.

There is a wide range of housing options and prospective buyers should think wisely and buy within their budget, he said.

Mr Khaw was responding to a question asked by Pasir Ris-Punggol Member of Parliament (MP) Gan Thiam Poh on whether there were plans to review the existing pricing policy for HDB flats to ensure that public housing remains affordable for Singaporeans.

He cited the deteriorating global economic situation as one of the reasons to be wary.

"The current low interest rate will not stay low forever. Any global economic recession may also affect their (Singaporeans') jobs.
"On the other hand, existing HDB owners should refrain from cashing out their flats without thinking through their subsequent housing plans," he said.

Mr Khaw also said several Build-to-Order(BTO) launches have stabilised prices of new HDB flats since May and that BTO prices are affordable for newlywed first-timers.

The minister also commented on the issue of second-timers purchasing flats.

"For second-timers, the issue is more complicated as they rely more on the resale market and our influence over the resale market is indirect.

"The current resale prices are the results of an imbalance in supply and demand. We are taking active steps to re-balance them, but we need time," he said.

Source: The Straits Times – 22 November 2011

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