'I think we try to avoid interfering in the market if we can and that's the reason why we continue to depend on broad dissemination of information even sometimes persuading various parties to come up with more accurate information and then collating them and getting URA and HDB to push out this info in a very timely and very comprehensive manner,' said Mr Mah. -- ST PHOTO: LIM SIN THAI
THE Government will depend on 'non-interventionist measures' to cool the red hot property market.
National Development Minister Mah Bow Tan said the Government's twin approach is to give out more information and push up supply.
Speaking to the media just three days after the release of Singapore's first comprehensive data on housing prices, Mr Mah also said 'there's no reason to be alarmed.'
Referring to sub-sale figures, he said: 'If you look at the numbers, it's quite a distance away from what we have in the mid 90s, particularly in 1996.'
The minister also declined to say if the government will introduce more measures to cool the property sector.
'I think we try to avoid interfering in the market if we can and that's the reason why we continue to depend on broad dissemination of information even sometimes persuading various parties to come up with more accurate information and then collating them and getting URA and HDB to push out this info in a very timely and very comprehensive manner,' he said.
Mr Mah added long term measures are already in place.
There will be sufficient supply to meet housing demands over the next three to five years.
In June, the Ministry of National Development (MND) announced the biggest Government Land Sales (GLS) Programme with enough land for about 8,000 private homes.
Another 56,182 housing units are in the pipeline. Of which 30,158 units have not been sold. These units are expected to be ready between the end of this year and 2010
'The long term measures are very well in hand and we know that there's going to be enough supply in the next 3 to 5 years. I think that's a fact and nobody disputes that. It's really what happens in the short term.
'I think there's a lot of excitement and maybe a little bit of panic in the short term - maybe next month, 6 months, one year', said Mr Mah.
This is where measures like releasing vacated flats under the Selective En Bloc Redevelopment Scheme or Sers will help.
120 such flats in Tiong Bahru will be released for short term rental.
The flats, which are built in the 50s, will be spruced up by the Managing Agents, tasked with renting out the flat.
'The Managing Agent will do some renovations, touch up, repairs and do some short term rental for one or two years. It's not going to make a big dent in the market but it will test the market,' Mr Mah explained.
If response to these flats is good, up to 5,000 more units can be added to the supply over the next there years.
Mr Mah said he's confident that by pushing out information and increasing housing supply, property prices will be moderated.
He said the latest data released last Friday showed that although prices have gone up across the board, rates remain 'affordable'.
'The government will keep an eye on the situation to make sure we remain competitive,' he said.
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