http://www.todayonline.com/hotnews/EDC091124-0000053/Too-early-to-give-a-rollback-date
Too early to give a rollback date
05:55 AM Nov 24, 2009
SINGAPORE - Measures taken to cool the property market seem to have had the desired effect, said National Development Minister Mah Bow Tan, who signalled that the Government may remove certain anti-speculative measures in future if the property market stabilises or weakens - but it is yet too early to say when.
Mr Mah noted that since steps were introduced, starting with the ban on the Interest Absorption Scheme (IAS) and Interest-Only Loans, private home sales fell 37 per cent on-month in September and another 29 per cent last month.
The Government also reinstated its Confirmed List for its land sales programme in the first half of 2010.
It will continue to monitor the market closely to assess its response to the measures, before deciding whether further anti-speculative steps are needed, Mr Mah told Parliament.
"We want to curb erratic spikes in prices due to excessive speculation, inaccurate information or market manipulation. But we must let market forces determine prices, based on genuine demand from home-buyers and investors," he stressed.
Credo Real Estate managing director Karamjit Singh reads this as meaning that the property market should function with minimal intervention. "It's difficult to say when the Government would reinstate the (IAS and interest-only loans), since the property market changes year to year. The measures may be recalled to prevent a meltdown, but I don't see that happening in the short term," Mr Singh said.
PropNex CEO Mohamed Ismail, who credited the Government's action with bringing "sanity to the property market" by curbing speculators, concurred: "We do not think it is necessary for IAS restoration within the next one year." Yasmine Yahya and Esther Fung
Mr Mah noted that since steps were introduced, starting with the ban on the Interest Absorption Scheme (IAS) and Interest-Only Loans, private home sales fell 37 per cent on-month in September and another 29 per cent last month.
The Government also reinstated its Confirmed List for its land sales programme in the first half of 2010.
It will continue to monitor the market closely to assess its response to the measures, before deciding whether further anti-speculative steps are needed, Mr Mah told Parliament.
"We want to curb erratic spikes in prices due to excessive speculation, inaccurate information or market manipulation. But we must let market forces determine prices, based on genuine demand from home-buyers and investors," he stressed.
Credo Real Estate managing director Karamjit Singh reads this as meaning that the property market should function with minimal intervention. "It's difficult to say when the Government would reinstate the (IAS and interest-only loans), since the property market changes year to year. The measures may be recalled to prevent a meltdown, but I don't see that happening in the short term," Mr Singh said.
PropNex CEO Mohamed Ismail, who credited the Government's action with bringing "sanity to the property market" by curbing speculators, concurred: "We do not think it is necessary for IAS restoration within the next one year." Yasmine Yahya and Esther Fung
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