Too early to assess impact of recent property cooling measures: Mah

It is too early to assess the full impact of recent measures introduced to cool Singapore’s hot property market, according to National Development Minister Mah Bow Tan, who was speaking in Parliament on Monday.

Mr Mah added that there are however signs of greater stability in the market.

Based on Urban Redevelopment Authority’s (URA) flash estimate of the Property Price Index (PPI), the increase in prices of private residential properties moderated to 3.1 per cent in the third quarter this year from 5.3 per cent in the previous quarter.

The government introduced the recent set of property measures to pre-empt a speculative bubble from forming, encourage greater financial prudence, and to reinforce the objective of long-term owner occupation for public housing.

“By taking these calibrated steps one at a time, we are able to let the air out of the bubble as it were, gradually, rather than to prick the bubble and then have it burst – because when the property bubble burst, a lot of people will be hurt, not to mention the economy,” said Mr Mah.

Source : Channel NewsAsia – 18 Oct 2010

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