SINGAPORE: National Development Minister Khaw Boon
Wan says "plenty" of housing units are coming on stream, with about
200,000 units to be built by 2016.
Of these, about 80,000 are private properties,
10,000 are Executive Condominiums and 110,000 are HDB
units.
Mr Khaw said this is equivalent to the building of
four new Ang Mo Kio towns by 2016.
He made the comments in a blog post, "Enough Homes for All", on
Friday.
Mr Khaw believes supply in the property market will catch up with
pent-up demand -- in two, three or four years.
He pointed out that the market is temporarily not in balance
because of under-building in the past and high investment demand
today.
Turning to the package of measures introduced last week to cool the
property market, Mr Khaw called it a necessary move.
He said doing nothing would be to allow prices to run beyond
economic fundamentals.
This would only invite a large and serious price correction in the
future and will not do anyone any good.
Mr Khaw said the package was carefully formulated to protect
first-timers.
He noted that investors buying additional properties may be
disappointed, but he hopes they will accept that the package will
also be good for them.
He also advised those contemplating buying a property to be
prudent.
They must bear in mind the fact that the current low interest rate
is unusual, and be aware that normal high interest rate will return
in time to come.
- CNA/ir/al
