Rising realty prices in S'pore will fizzle out
Monday, June 18, 2007
A SHARP surge in Singapore property prices is not sustainable in the long-run, a government minister said yesterday. Home prices in Singapore surged by 10 per cent last year on the back of a robust economy and are expected to increase further this year.
Rents in the wealthy city-state have also doubled this year.
The government last week released 15 new land sites for development, including eight for residential purposes, which analysts saw as a move to cool the red-hot market.
"It is very important for us to make sure that the prices do not overshoot or race ahead of the real growth in the economy," said Minister for National Development Mah Bow Tan.
"I think it is not sustainable in the long run and, of course, it is also not good for our competitiveness if prices and rentals go up too fast," Mah was quoted as saying in the Sunday Times. Singapore revised upwards its 2007 growth targets to fiveto seven per cent from 4.5-6.5 per cent after the economy grew a better-than-expected 6.1 per cent in the March quarter.
Singapore is now the eighth most expensive city in Asia in terms of housing costs for foreign expatriates.AFP
Rents in the wealthy city-state have also doubled this year.
The government last week released 15 new land sites for development, including eight for residential purposes, which analysts saw as a move to cool the red-hot market.
"It is very important for us to make sure that the prices do not overshoot or race ahead of the real growth in the economy," said Minister for National Development Mah Bow Tan.
"I think it is not sustainable in the long run and, of course, it is also not good for our competitiveness if prices and rentals go up too fast," Mah was quoted as saying in the Sunday Times. Singapore revised upwards its 2007 growth targets to fiveto seven per cent from 4.5-6.5 per cent after the economy grew a better-than-expected 6.1 per cent in the March quarter.
Singapore is now the eighth most expensive city in Asia in terms of housing costs for foreign expatriates.AFP
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