Khaw: Problem of high resale flat prices cannot be resolved overnight
July 25th, 2011 | Author: Temasek Review
PAP Housing Minister Khaw Boon Wan has implored Singaporeans to be ‘patient’ with the
sky-rocketing prices of resale HDB flats as they are problems which cannot be solved overnight.
Despite releasing more BTO flats at lower prices than last year, the prices of resale flats grow
by 2.9 percent in the second quarter of 2011, fueled by ever growing demand from new Singapore PRs.
Speaking to the state media on the sidelines of a community event yesterday, Mr Khaw predicts
it will take “three to five years to substantively solve the imbalance between
the supply and demand for HDB resale flats.”
He said on the supply side, the number of flats will be raised when the new
Build-To-Order (BTO) flats are completed. As for demand, he said the property cooling measures
implemented by the government have removed “unnecessary demand” from speculators.
He urged those who already with a property to hold back on dipping into the resale flat
market, as prices are currently too high.
Though Mr Khaw has implemented a few measures to help cool the red-hot property
market, he still refuses to solve the root cause of the problem by imposing restrictions
on Singapore PRs buying resale HDB flats.
It is not a surprise that the prices of resale flats continue to grow even when new flats
are released into the market because cash-rich Singapore PRs are still popping up the demand.
TRE calls on a minimum residency period of two years to be slapped on PRs before they
can buy resale flats as well as making them pay an additional 10 percent stamp duty in
their purchases. A capital tax gain of 100 percent should also be imposed on PRs selling
their flats after they leave Singapore to prevent them from profiteering.
July 25th, 2011 | Author: Temasek Review
PAP Housing Minister Khaw Boon Wan has implored Singaporeans to be ‘patient’ with the
sky-rocketing prices of resale HDB flats as they are problems which cannot be solved overnight.
Despite releasing more BTO flats at lower prices than last year, the prices of resale flats grow
by 2.9 percent in the second quarter of 2011, fueled by ever growing demand from new Singapore PRs.
Speaking to the state media on the sidelines of a community event yesterday, Mr Khaw predicts
it will take “three to five years to substantively solve the imbalance between
the supply and demand for HDB resale flats.”
He said on the supply side, the number of flats will be raised when the new
Build-To-Order (BTO) flats are completed. As for demand, he said the property cooling measures
implemented by the government have removed “unnecessary demand” from speculators.
He urged those who already with a property to hold back on dipping into the resale flat
market, as prices are currently too high.
Though Mr Khaw has implemented a few measures to help cool the red-hot property
market, he still refuses to solve the root cause of the problem by imposing restrictions
on Singapore PRs buying resale HDB flats.
It is not a surprise that the prices of resale flats continue to grow even when new flats
are released into the market because cash-rich Singapore PRs are still popping up the demand.
TRE calls on a minimum residency period of two years to be slapped on PRs before they
can buy resale flats as well as making them pay an additional 10 percent stamp duty in
their purchases. A capital tax gain of 100 percent should also be imposed on PRs selling
their flats after they leave Singapore to prevent them from profiteering.
