While recent property measures implemented by the government to cool the market are working, Minister for National Development Khaw Boon Wan said that much more can be done.
He noted that the government will ease the public housing crunch gradually, adding that queues for new HDB flats have reduced over time and prices have also stabilised.
In November 2011, around 85 percent of first-time buyers successfully purchased flats at new launches, higher than the 45 percent success rate in May that same year.
More flats have also been set aside for second-timers who now get 15 percent allocation for new flats, a notable increase from the previous five percent. The price hike in the resale market has slowed down as well.
In addition, more couples have been given the chance to own their own homes after the government increased the joint income ceiling from S$8,000 to S$10,000.
Mr Khaw added that he is also monitoring the mass marketing of shoebox units, which are no more than 500 sq ft in size. Apart from that, private home prices in the central region have been moderating.
However, many concerns need to be addressed. Housing prices are still at a historic high and some buyers are burdened with loans that will take 30 years to repay.
Nonetheless, Mr Khaw remains optimistic. “Having gone through many (property) cycles, I can only advise and remind that things don’t go in a straight line.”
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