The cooling measures are needed to ensure a “stable property market”, said Mr Desmond Lee, Minister for Social and Family Development and Second Minister for National Development.
Mr Lee was speaking at the Mid-Autumn Festival Lunch on September 19 organized by the Real Estate Developers’ Association of Singapore (REDAS)
Source: Desmond Lee’s Facebook page
He added that the rationale behind the cooling measures is “to simply keep prices in line with the economic fundamentals”.
“As acknowledged by REDAS, a large supply of private residential units is coming onstream and interest rates are going up. And 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.”
Mr Lee is speaking in response to REDAS’ President Augustine Tan who commented that the property cooling measures introduced in July have “weakened market sentiments and demand” by raising “the barriers to entry” for buyers.”
According to figures released by the Urban Redevelopment Authority (URA), private home sales in Singapore plunged by 64 percent in August, the least in six months.
Developers sold only 616 units last month compared to 1,724 units in July and 1,246 units in August last year.