Govt to watch market before deciding: Mah

Source : Business Times - 7 Nov 2008

THE government will watch the property market closely before deciding whether further measures are needed to address the supply-demand imbalance that has emerged, National Development Minister Mah Bow Tan said yesterday.

‘There is a lot of uncertainty,’ he said. ‘It’s best for us to watch carefully before we start to make the next move. We are watching the market very closely.’

On Friday last week, the government said the sale of land from the ‘confirmed’ list has been suspended for the first half of next year. Most sites on the ‘confirmed’ list have been shifted to the ‘reserve’ list, from which properties are offered for sale if there is interest from developers. A ban on converting office space in the central area to other uses, such as housing, was also lifted.

The moves are seen as an attempt to stabilise the property market as residential prices and office rents continue to fall. Developers welcomed them, but expressed hope that the government will reintroduce the deferred payment scheme (DPS), which was scrapped in October last year to deter speculation.

Under the DPS, home buyers had to pay only 10 or 20 per cent of the price of a residential property without having to commit to a bank loan, which could be delayed until a project was closer to completion and the rest of the payment was due.

Asked yesterday if the DPS will be reintroduced, Mr Mah said the authorities are watching the market. ‘We have just made this change (the suspension of sites from the ‘confirmed’ list),’ he said. ‘Let’s take a look and see what the market is like.’

Mr Mah, who was speaking to reporters on the sidelines of a public forum on enhancing Singapore’s environment, also said Singapore will have a blueprint on sustainable development for the next 10-15 years by February next year.

The inter-ministerial committee on sustainable development, set up in February this year to come up with a national strategy for sustainable development, will release its recommendations then, he said.