More measures if needed

THE Government has served notice that it will introduce additional measures, if necessary, to promote a stable and sustainable property market.

On Friday, it announced two measures – a seller’s stamp duty and a lower housing loan limit – to help temper sentiment in the simmering residential property market, which it said is showing signs of starting to heat up again.

To pre-empt a property bubble from forming, the government said it is tightening the supply of credit to the housing market ‘to encourage greater financial prudence’ among property buyers.

‘The Government prefers to take small steps early, rather than be forced to impose more drastic measures after a bubble has formed,’ said a joint statement from the ministries of National Develop and Finance, and Monetary Authority of Singapore.

‘The Government will continue to monitor the property market closely and will introduce measures if required later, to promote a stable and sustainable property market,’ added the statement.

At the same time, it will also continue to ensure that there is adequate housing supply to meet demand.

Already, it has made available sites under the Government Land Sales (GLS) programme that can yield 10,550 private housing units in the first half of this year. This is the highest supply level in the history of the GLS scheme.

Source : Straits Times – 19 Feb 2010