More steps to ease housing woes: PM
Government announces measures to cool public and private property markets
Aug 30, 2010
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The Government will be introducing more measures to ensure public housing remains affordable and to cool the red-hot private property market.
Announcing this in his National Day Rally speech last night, Prime Minister Lee Hsien Loong gave some details of what will be done to make sure HDB flats remain affordable to Singaporeans, including those currently earning more than $8,000 a month.
But he held back on impending measures to rein in runaway private property prices, leaving it to the Ministry of National Development (MND) to announce today that measures would be introduced to ‘maintain a stable and sustainable property market.’.
These included ‘increasing the holding period for imposition of Seller’s Stamp Duty (SSD) from the current one year to three years’, and for property buyers who already have outstanding housing loans, the minimum cash payment would be increased, while the Loan-to-Value limit for housing loans would be decreased.
The MND’s objective is to ‘ensure a stable and sustainable property market where prices move in line with economic fundamentals’ and the government hopes that these measures, combined with continued affordable housing, would slow down the currently buoyant property market.
PM Lee’s stated purpose was to ensure, ‘that in the long term, Singaporeans can own their homes and afford it, and it would be a gradually appreciating asset which will grow as Singapore grows, so that Singaporeans can benefit.'
The announcement was among a range of measures to address Singaporeans' anxiety over the influx of foreigners and immigrants.
While acknowledging 'legitimate concerns which we take seriously' - fears over competition, crowding and the changing character of Singapore's society, he also spelled out why it is important for the country to stay open.
It needs to gain talent, garner reinforcements to grow the economy and make up for the population shortfall.
So the challenge is in balancing Singaporeans' concerns with these imperatives. As Mr Lee put it: 'How do we keep the door open while protecting the interest of Singaporeans? How do we welcome citizens while holding to our values?'
There are no ideal or permanent solutions, he acknowledged, and 'we will have to manage, monitor and adjust as we go along'.
He outlined what the Government is trying to do to limit the downsides.
Besides alleviating housing woes, it makes an important distinction between foreign workers and immigrants.
The former are transients who will leave when the job is done, said Mr Lee. Citizens will always come first, he assured his audience.
On the economic front, Mr Lee noted that while Singapore is attaining a spectacular 13 to 15 percent in growth this year, the figure is 'less spectacular' when seen over the three years from 2008 to this year.
Averaged out, growth becomes 5per cent a year over these three years.
But this is a 'realistic target'. 'For the next 10 years, if we can make 3 to 5 per cent growth on average every year, I think we're doing well,' he said.
Source: The Straits Times © Singapore Press Holdings Ltd. Reprinted with permission.
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