TODAY ONLINE : Govt measures were not intended to stop price rise, says minister

Govt measures were not intended to stop price rise, says minister

05:55 AM Apr 28, 2010

by Esther Ng

When the Government introduced measures to cool the property market in February, the steps were not intended to stop prices from rising.

Instead, they were calibrated to temper exuberance in the market and pre-empt a property bubble from forming, Minister for National Development Mah Bow Tan told Parliament yesterday.

Overall, property prices increased 5.6 per cent in the first quarter this year compared to 7.4 per cent in the fourth quarter of last year.

Recent data for public housing show signs of moderation. Resale prices registered slower quarter-on-quarter increase and the median cash over valuation has also stabilised, said Mr Mah.

MP for West Coast GRC Ho Geok Choo had asked what other measures MND intend to introduce as public and property prices continue to rise despite recent cooling measures.

Mr Mah informed the house that the government would "inject an even larger supply" of private housing through the Government Land Sales programme in the second half of the year if demand continues to be strong. Details of this will be announced in June.

Since January, the Housing and Development Board has launched 5,100 flats.

Another 7,400 units will be launched between May and September.

Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved