Supported by a buoyant real estate market, the GLS Programme has added $9.4 billion of revenue to the government coffers in the first 11 months of this year, five times higher than the $1.8 billion of sales seen in 2009.
The figures were revealed by Simon Cheong, head of the Real Estate Developers Association of Singapore (Redas), at a dinner celebrating the 51st anniversary of the association.
Developers were optimistic on Singapore’s property market in the long term considering the continuous drive of the government to reposition the economy, said Mr. Cheong. The association estimates that new home sales will reach 14,500 units for the whole year, in line with earlier analyst forecasts.
“We believe the market will continue to be underpinned by sound economic fundamentals and a favourable business environment,” said Mr. Cheong.
He, however, noted that the real estate market started to slow down in Q3 following the announcements of two sets of cooling measures in February and August.
The land supply for H2 2010 under the GLS programme has also been “very significant”, added Mr. Cheong.
“As Asian economies including Singapore adjust to this part of the world and tighten up on measures to deal with the threat of overheated property prices, the market will adjust and take into account these new challenges,” he said.
“It is in our interest to see a graduated trend in value movements in order to realise a sustainable environment for real estate development rather than face the volatility arising from mismatched market forces."
Some developers said they expect a less volatile real estate market next year.
“I see a more stable market,” said Lim Ee Seng, executive director of Frasers Centrepoint. “With the government measures, developers are more measured in their bidding. There should be sufficient supply for buyers, especially for the upgraders market.”
The developer is especially confident on the upgraders market and it will continue bidding for land parcels that cater to this segment, added Mr. Lim.
Francis Koh, managing director of Koh Brothers, said “a gradual and steady growth in property prices and volumes is better for the whole market,” adding that the real estate market should continue to fare well next year if the country’s economic performance remains robust.