and ... only 'substantively resolve' and not 'totally resolve'. Is he saying that it may take longer than 5 years to totally resolve what Ah Mah did??? :*:
Years to correct supply-demand imbalance for HDB flats: Khaw
SINGAPORE: National Development Minister Khaw Boon Wan said it will take 3 to 5 years to "substantively resolve" the problem of high resale flat prices and for prices to stabilise.
He said there is currently an imbalance between supply and demand - and new Build-To-Order (BTO) flats take three years to build.
Mr Khaw said this in response to questions from reporters on the sidelines of a community event on Sunday.
He also expressed confidence that resale flat prices will stabilise but stressed that the problem of high prices cannot be solved overnight. He urged Singaporeans to be patient.
On Friday, figures from the HDB showed prices rising by 3.1 per cent in the second quarter of this year, nearly twice the previous quarter's 1.6 per cent.
"Why do prices go up? It's very simple, because there's an imbalance in supply and demand. Supply means... build more. (But) you won't see the flat until three years later. New housing plans will have effect on the resale market. So the more I push out, I'm sure there's some influence," said Mr Khaw.
On the demand side, Mr Khaw advised young couples who have a place to stay in currently, not to get too excited and jump into the resale market. Instead, they should continue to apply for a BTO flat. He also urged upgraders who already own a flat to hold off on their plans, so as not to crowd the market.
Mr Khaw added that the property cooling measures implemented by the government have reduced unnecessary demand stemming from speculation.
Mr Khaw also explained why the HDB stopped releasing the median Cash-Over-Valuation (COV). The minister said the figure is "misleading" and cannot be used to judge if COV has gone up or come down.
He added that the median figure is dependent on the house type and location of flats that are sold, which can change from month to month.
Instead, the HDB will continue to offer a breakdown of COV according to location and house type, which Mr Khaw said, is the information Singaporeans need when they decide on whether to buy a home.
- CNA /ls
Years to correct supply-demand imbalance for HDB flats: Khaw
SINGAPORE: National Development Minister Khaw Boon Wan said it will take 3 to 5 years to "substantively resolve" the problem of high resale flat prices and for prices to stabilise.
He said there is currently an imbalance between supply and demand - and new Build-To-Order (BTO) flats take three years to build.
Mr Khaw said this in response to questions from reporters on the sidelines of a community event on Sunday.
He also expressed confidence that resale flat prices will stabilise but stressed that the problem of high prices cannot be solved overnight. He urged Singaporeans to be patient.
On Friday, figures from the HDB showed prices rising by 3.1 per cent in the second quarter of this year, nearly twice the previous quarter's 1.6 per cent.
"Why do prices go up? It's very simple, because there's an imbalance in supply and demand. Supply means... build more. (But) you won't see the flat until three years later. New housing plans will have effect on the resale market. So the more I push out, I'm sure there's some influence," said Mr Khaw.
On the demand side, Mr Khaw advised young couples who have a place to stay in currently, not to get too excited and jump into the resale market. Instead, they should continue to apply for a BTO flat. He also urged upgraders who already own a flat to hold off on their plans, so as not to crowd the market.
Mr Khaw added that the property cooling measures implemented by the government have reduced unnecessary demand stemming from speculation.
Mr Khaw also explained why the HDB stopped releasing the median Cash-Over-Valuation (COV). The minister said the figure is "misleading" and cannot be used to judge if COV has gone up or come down.
He added that the median figure is dependent on the house type and location of flats that are sold, which can change from month to month.
Instead, the HDB will continue to offer a breakdown of COV according to location and house type, which Mr Khaw said, is the information Singaporeans need when they decide on whether to buy a home.
- CNA /ls
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