PM Lee pledges further action on property if necessary
He says Friday’s measure will inject some market reality
(SINGAPORE) Prime Minister Lee Hsien Loong yesterday said the government will continue to monitor property market trends closely and take further action if necessary.
His remarks come shortly after Friday evening’s announcement on the scrapping of the deferred payment scheme for property purchases, which Mr Lee described yesterday as a step that will ‘help to dampen excessive speculation and help to inject some reality into the market’.
Powered by FireStats
October 30th, 2007 at 9:14 am
This is an important move by Singapore gov. Not only this msg assures its people of more affordable housing, it sends strong signal to foreign business wanting to setup business here that cost are at check.
In short term, this should kill off most speculative buying, slowing down the pace of price increase.
In long term, as more good news about Singapore economy performance report-cards by end of year, more jobs creation news, and moving of funds from the now weaken US and Europe into high-growth Asia, the slowed down property prices may match the value of Singapore better.
This ensure better sustained growth, and helps prolong this property-cycle, which in turn protects the value of the current property investment better.
As time goes by, Singapore will be seen as a more competitive place to do business, given the rising cost of its close neighbour like Hong Kong and China. With Singapore’s stability in terms of low corruption levels and security, Singapore may become the better place to start a base here to serve the rest of the region.