ST : Cool, not crash property market

Nov 23, 2009
Cool, not crash property market
By Jessica Cheam



Such schemes included the Interest Absorption Scheme and the Interest-Only Loans, which allowed home buyers to defer the bulk of the payment on their home purchase. -- ST PHOTO: DESMOND FOO

MEASURES to cool the property market appear to have had some effect in tempering market exuberance for private homes, said National Development Minister Mah Bow Tan on Monday.

But the government's intention is to 'cool the market, not crash it', said Mr Mah, who did not rule out restoring some of the disallowed schemes in the future.

Such schemes included the Interest Absorption Scheme and the Interest-Only Loans, which allowed home buyers to defer the bulk of the payment on their home purchase.

These schemes were banned with immediate effect in September, when the Government also announced the resumption of the Government Land Sales (GLS) programme to put supply on the market.

Mr Mah noted in Parliament on Monday that latest figures from the Urban Redevelopment Authority (URA) show that sales of private homes by developers fell month-on-month by 37 per cent in September, and a further 29 per cent in October.

'The Government will continue to monitor the property market closely and assess the market's response to the measures introduced before deciding whether further measures are necessary to promote a stable and sustainable property market,' he said.