SINGAPORE: The proportion of private residential
properties bought by foreigners and companies has fallen sharply -
from about 20 per cent in 2011 to 7 per cent in the first half of
this year.
Short-term property speculation has also fallen
sharply, as indicated by the relatively low volume of
sub-sales.
And private home prices moderated significantly,
rising marginally by 0.3 per cent in the first half of 2012
compared to the 6 per cent increase for the whole of 2011.
National Development Minister Khaw Boon Wan said the Additional
Buyer's Stamp Duty (ABSD), together with the earlier rounds of
cooling measures and the ramp up in both public and private housing
supply, has produced "encouraging results".
The ABSD was introduced last December to moderate investment demand
for private residential property and to promote a more stable and
sustainable market.
In particular, a higher ABSD rate for foreign buyers and companies
was introduced, in view of the large pool of liquidity and strong
buying interest from abroad, and the relatively small size of the
Singapore market.
Mr Khaw said these measures have helped the home buyers, including
those at the middle and low-end of the market.
For mass market private housing outside the central region, prices
have moderated with a slower pace of increase of 0.4 per cent in
the second quarter of 2012, compared to the 1.1 per cent increase
in the previous quarter.
For the public housing market, the significant ramp up in new flat
supply has enabled most first-timers a chance to select a BTO flat
if they apply for one.
These are positive signs that the market is moving towards a stable
and more sustainable path.
Mr Khaw said the government will continue to monitor the market
closely, and remain ready to revise and enhance the policy, if and
when the situation demands it.
Mr Khaw was responding in a written answer to a parliamentary
question tabled by Nominated MP Tan Su Shan on Monday.
- CNA/ck
