More supply of private housing in 1H 2011 land sales if demand holds

The government will inject an even larger supply of private housing in its land sales programme for the first half of 2011 if demand continues to be strong.

In its land sales programme for the second half of this year, the government is making available sites that can yield about 13,900 private housing units, of which about 8,100 units will be from sites on the Confirmed List.

This, National Development Minister Mah Bow Tan said is the largest supply the government has ever offered since the land sales programme started in 1991.

The assurance came in a written reply to a question by Nominated MP Calvin Cheng.

Mr Cheng wanted to know if foreign buyers are responsible for the rise in property prices in Singapore.

In reply, Mr Mah said they account for only 13 per cent of all private housing purchases in the first half of the year.

He said the recent increase in private property prices was a result of a combination of factors, such as improved sentiments arising from the fast economic recovery and abundant liquidity in the economy.

He said his ministry monitors the market closely to ensure that there is sufficient supply to meet the demand for private housing from both locals and foreigners.

As at second quarter of this year, there were about 61,800 uncompleted private residential units in the pipeline which will be completed over the next few years.

Of these, 32,600 units have not been sold yet.

Source : Channel NewsAsia – 17 Aug 2010

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