40,000 private homes to come onboard in next 3-4 years

Source : Channel NewsAsia – 9 Jul 2009

40,000 new private homes will enter the property market in the next three to four years, according to the National Development Minister, Mah Bow Tan.

He said on Thursday that more property information, such as transaction prices, would be published to keep the market efficient and ensure that home prices are based on fundamentals.

Mr Mah said: “What we will do is put out complete information on how much property is coming into the market. We will give out information on what are the actual transacted prices, rather than to have reports of high prices alone. I think we should give a good idea of what is the spread of prices.”

Mr Mah was speaking to reporters on the sidelines of a community event.

When asked to comment on the current buying momentum in the private property market, Mr Mah said it is difficult to tell if such demand will hold up.

He said: “One is the sentiment – how people perceive the economy is going to be, what the world economy is going to be like, what Singapore’s world economy is going to be like?

“Number 2 is also depending on fundamentals. By that, I mean: what is the supply of private properties, what’s the take-up rate, what are the prices, what are the transacted prices.”

Mr Mah said the government will monitor both demand and supply and make adjustments as needed.

He also noted that the buying momentum was unlikely to be driven by speculators. “So far, I think anecdotally we don’t see any. But if there is, then we will take the appropriate action,” said Mr Mah.