New cooling measures making it harder for developer to clear new housing stocks says Redas chief
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The latest round of cooling measures was introduced recently amidst the spike in housing prices. No doubt that a runaway housing prices will result in affordability issue amongst aspiring young couples and upgraders.
Therefore it is crucial that the government takes appropriate measures to ensure that residents do not overspend on housing, which could potentially affect their retirement adequacy which is another issue to be dealt with.
[THE nearly 46,000 private residential units that could become available for sale in 2019 and 2020 would take about five years to be absorbed by the market - and this is barring unforseen circumstances.
Augustine Tan, president of the Real Estate Developers' Association of Singapore (Redas) said this on Wednesday at the association's annual mid-autumn festival lunch.
"With the new cooling measures, it'll be harder (for developers) to offload new units... as they have become more expensive to buy, especially from the second and third units onwards, and also for foreigners," he told The Business Times by phone after the event.
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At the Redas event, Second Minister for National Development and guest of honour Desmond Lee reiterated the government's rationale for the cooling measures - to "keep prices in line with economic fundamentals".
"As acknowledged by Redas, a large supply of private residential units is coming onstream and interest rates are going up. To avoid a severe correction later, which can have a more destabilising set of consequences, we decided to act earlier to maintain a stable and sustainable property market."]
