(Jan 16): Singapore’s government is “not averse” to implementing more property cooling measures if needed, The Straits Times newspaper reported, citing Minister for National Development Desmond Lee.
In recent years, Singapore authorities have sought to tame the local housing market by implementing multiple rounds of measures, including raising stamp duties for second-home buyers and doubling those on foreigner purchases to 60%. Yet home prices have rebounded, climbing 3.9% for the year, according to preliminary estimates, while 2024 home sales beat forecasts.
Housing affordability has become a major concern for Singaporeans after prices surged during the pandemic. Private home valuations have jumped more than 30% since the end of 2019. That is posing a challenge to the country’s ruling People’s Action Party, which is seeking a sixth decade in power at elections that have to be held before the end of 2025.
It is not yet time to roll back curbs that have been imposed to keep property prices under control, Lee said. “Let the supply and demand side measures work their way through,” he said in an interview with local media outlets.
Most of Singapore’s population lives in public flats, the prices of which have also climbed. Lee said the housing authority plans to launch more than 50,000 new flats from 2025 through 2027, as part of a multi-year ramp-up of supply to meet increased housing demand.
Values of second-hand units, known as resale flats, jumped 9.6% last year, according to preliminary estimates. That’s nearly double the rate of 2023, when they rose 4.9%.
The government is not averse to putting in new measures if necessary, “because we need to ultimately make sure that there’s no property bubble, whether it’s on the private side or on the public housing sector”, Lee said.
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