By Shabnam Muzammil:
Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam recently told Bloomberg TV that home prices in Singapore were not yet at an acceptable level.
Mr Shanmugaratnam noted that "some correction in prices will not be out of order".
"We’re still in a wrong part of the cycle," he added, explaining that the adjustment process would "happen through a combination of income improvement, as well as prices certainly not going up further".
But he is confident that the government can handle the situation especially after seven rounds of property cooling measures and more housing supply in place.
"We can prevent a real bubble from being formed which then eventually crashes, and that’s our objective."
Since 2009, home prices have risen by 30 percent due to strong economic growth, healthy capital inflows and low interest rates.
Image Source: Yahoo! Singapore
Shabnam Muzammil, Senior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email shabnam@propertyguru.com.sg
Related Stories:
Govt adopting wait and see approach to property market