Singapore Property Sector - A Positive Message

National Development Minister Mah Bow Tan said there was “every likelihood” the government would reintroduce the confirmed list of land sites that was suspended last October. The question, as the Minister put it is: “how much to put on the list”.

This is the only logical and systematic thing one would expect this government to do after the hectic home sales since February, exceeding 1000 units a month.

What’s important is the positive “message” from the Minister. Our take on the subject:

- if the intention is merely to satisfy the strong demand, the government could easily transfer sites from the reserved (triggered only if developers commit to bid) to the confirmed list.

- The fact that the confirmed list is the option chosen is likely to reflect the government’s view that demand is sustainable.

It is also worth noting the Minister’s confidence in HDB resale prices continuing to rise. This is really surprising considering how the HDB has for years now, got a grip over the supply of public housing, with schemes like Build- To-Order”.


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