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SG Cooling measures is right thing to do: Khaw

Property Here - Tuesday, December 24, 2013

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In a Facebook post on Monday that was reported in the media, National Development Minister Khaw Boon Wan said that the government cannot completely eliminate the property cycle, but it can restrict the formation of a property bubble. 

Referring to a recent New York Times article about the rise and fall of Ireland’s housing market, Mr Khaw explained that a property bubble and “its inevitable bust” brings misery to many people.

As such, the government has a duty to implement cooling measures even if it makes some developers and home sellers unhappy. It is also the right thing to do, he added. 

Meanwhile, some experts noted that the government’s measures have effectively curbed Singapore’s spiralling property prices.

“If there had not been any measures, definitely I think the pace of acceleration in prices will be more pronounced, that is, we (will) definitely (be) seeing double-digit numbers on a per annum basis,” said Donald Han, Managing Director of Chesterton Singapore.

“But because measures have actually come out fast and in a variety...in the last three years, I think that helps to keep in check any price increases,” he added. 

As Singapore’s real estate market stabilises, the government could also consider relaxing some its measures, especially the ABSD and Seller's Stamp Duty. 

“At the end of the day, the economy is growing and there is no reason to artificially cause property prices to deteriorate,” noted Eugene Lim, Key Executive Officer at ERA Realty Network.

However, experts cautioned that the easing of measures should be properly implemented.