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July 29, 2009
Be cautious and prudent
By Jessica Cheam
Mr Mah (left) said buyers should not panic, as there is plenty of supply in the pipeline and the government could bring back its suspended land sales programme if necessary. -- PHOTO: ZAOBAO
NATIONAL Development Minister Mah Bow Tan has sounded a note of caution to home buyers amid the buying frenzy that has gripped the local property market in recent months.
Noting that there are signs of speculation, even if not excessive, he said the Government will take 'whatever action necessary' to curb this. If necessary, it would reinstate the confirmed list of sites in the Government's land sales programme, he said.
Mr Mah also reiterated that although the economic outlook has improved over the past few months, the forecast for Singapore's economy this year is still negative growth. For the market to be healthy, the demand must be based on certain economic fundamentals, he said.
Although China is growing strongly, reports coming out of the United States remain mixed.
Speaking to reporters after the topping out ceremony of the Marina Bay Financial Centre, Mr Mah said: 'I wouldn't say there is excessive specuation at the moment, but there is some element of speculation involved. Some of the practices and habits that you saw in the last property boom, are beginning to comeback, so I think we'll have to be careful.'
Some of the signs of a red hot market include queues forming days before the launch of a new residential project.
Suburban condo Optima, located next to the Tanah Merah MRT station, for example, saw lines snaking outside the showflat on Monday - four days before the showflat opens on Friday. Real estate agents in the these queues also carried blank cheques in hand from their clients.
Mr Mah said the Government was closely monitoring the market and urged buyers to make use of publicly available data from the Urban Redevelopment Authority's website before commiting to a purchase.
'It is in all our interest that the market is a healthy, sustainable one,' he said.
At the moment, it is uncertain whether the activity is due to pent-up demand, or buyers responding to lower prices by developers or even to the current low interest rates, he said. He called on buyers to do their homework and their sums, by researching prices and studying public information such as upcoming supply and the price range of flats.
'Don't commit right up to the hilt... think about what if interest rates rises in the future, would you still be able to afford it?' he said.
July 29, 2009
Be cautious and prudent
By Jessica Cheam
Mr Mah (left) said buyers should not panic, as there is plenty of supply in the pipeline and the government could bring back its suspended land sales programme if necessary. -- PHOTO: ZAOBAO
NATIONAL Development Minister Mah Bow Tan has sounded a note of caution to home buyers amid the buying frenzy that has gripped the local property market in recent months.
Noting that there are signs of speculation, even if not excessive, he said the Government will take 'whatever action necessary' to curb this. If necessary, it would reinstate the confirmed list of sites in the Government's land sales programme, he said.
Mr Mah also reiterated that although the economic outlook has improved over the past few months, the forecast for Singapore's economy this year is still negative growth. For the market to be healthy, the demand must be based on certain economic fundamentals, he said.
Although China is growing strongly, reports coming out of the United States remain mixed.
Speaking to reporters after the topping out ceremony of the Marina Bay Financial Centre, Mr Mah said: 'I wouldn't say there is excessive specuation at the moment, but there is some element of speculation involved. Some of the practices and habits that you saw in the last property boom, are beginning to comeback, so I think we'll have to be careful.'
Some of the signs of a red hot market include queues forming days before the launch of a new residential project.
Suburban condo Optima, located next to the Tanah Merah MRT station, for example, saw lines snaking outside the showflat on Monday - four days before the showflat opens on Friday. Real estate agents in the these queues also carried blank cheques in hand from their clients.
Mr Mah said the Government was closely monitoring the market and urged buyers to make use of publicly available data from the Urban Redevelopment Authority's website before commiting to a purchase.
'It is in all our interest that the market is a healthy, sustainable one,' he said.
At the moment, it is uncertain whether the activity is due to pent-up demand, or buyers responding to lower prices by developers or even to the current low interest rates, he said. He called on buyers to do their homework and their sums, by researching prices and studying public information such as upcoming supply and the price range of flats.
'Don't commit right up to the hilt... think about what if interest rates rises in the future, would you still be able to afford it?' he said.
