Higher supply of new BTO flats may take heat off resale market: property watchers

Source : Channel NewsAsia – 6 Aug 2010

Property watchers believe a higher supply of new Build-To-Order flats for 2011 will help to take some heat off the resale market where prices have been hitting record highs.

Minister for National Development Mah Bow Tan said the Housing & Development Board is prepared to launch 16,000 new flats next year.

They believe that this will allay concerns that prices are climbing too fast.

And they hope that prices will stabilise so that the Cash-Over-Valuation amounts will moderate.

Chris Koh, director, Dennis Wee Group, said: “They’re trying to allay the fears of the public because prices are going up high. We hope that prices will more or less stabilise so that the Cash-Over-Valuation will come down.”

However, he added if the demand is there and buyers are willing to pay more, this would still push prices up.

Overall, he said the increased supply of flats may not have a “very big impact” as the groups of buyers who buy brand new flats and resale flats are different.

And those who are not eligible for new flats will continue to turn to the resale market.