Second Minister for National Development Indranee Rajah said on Tuesday that industry players should continue to be “professional, cautious, and diligent, and not stoke exuberant sentiments” in the property sector (Feb 23).
Ms Indranee said that making a stable property sector would help all stakeholders in the long run, speaking at an event organized by the Real Estate Developers’ Association of Singapore (REDAS).
Despite the fact that the economy plunged into contraction last year, private home prices grew 2.2 percent, while resale prices for Housing Board flats hit their highest level since 2012, owing to an increase in purchasing activity.
Ms Indranee warned that the global economic recovery would be “uneven, unpredictable, and sluggish,” with other countries struggling with repeated outbreaks of infection and novel coronavirus variants.
“How the global economic and pandemic circumstances turn out, as well as the current uncertainty, may have an effect on Singapore’s economy, particularly our labor and housing markets. “As a result, we must be alert,” she added.
“Developers can be careful when negotiating for property to prevent overextending themselves financially.
“Before making long-term financial decisions, prospective home owners could evaluate their willingness to service mortgage responsibilities, considering the volatile economic climate and the prolonged rebound in the domestic labor market.”
REDAS President Chia Ngiang Hong talked at the same event about how architects are implementing greener construction solutions and structures as part of a national drive towards sustainability.
“Because such solutions are capital-intensive and require time to grow, the government’s continued support for the built environment is crucial,” he said.
“We therefore hope for appreciation and consideration to change policies if appropriate in order to ensure a long-term competitive and healthy property sector. It is highly important.”
Developers are worried about the world overall economy, which “remains weak,” as well as geopolitical trends and domestic business dynamics, according to Mr Chia, the group general manager of City Developments Limited.
Developers were motivated by the “understanding of the urgent problems facing the building sector” during recent engagement sessions with several ministers, he added, including high business rates and short contract deadlines.
“Of addition, their ability to aid in the settlement of these problems is highly appreciated,” he said.
Mr Chia went on to state that REDAS “completely advocates” the need for the property sector to be immune to economic downturns, property bubbles, and external shocks, and for values to suit economic fundamentals.
