By Claire Huang | Posted: 12 November 2012 2247 hrs


The total number of private residential properties bought was about 22,000 in the first half of 2012, as compared to 19,000 in the first half of 2011 and 17,000 in the second half of 2011.

National Development Minister Khaw Boon Wan said this in a written parliamentary response to a question by MP for Pasir Ris-Punggol GRC, Gan Thiam Poh.

He said cooling measures introduced in January last year aimed to eliminate speculative demand and are complemented with an aggressive supply ramp up.

Over the next five years, about 94,000 housing units will be completed.

This is about one-third of the current stock of private housing.

Altogether, the measures have resulted in the increase in the Property Price Index to fall from 18 per cent in 2010 to six per cent last year.

And it has gone down even further to just one per cent in the first three quarters of 2012.

Mr Khaw said the proportion of properties bought by foreigners also fell from 18 per cent last year to six per cent in the first three quarters of this year.

He added that the proportion of sub-sales, a proxy of the level of speculation in the housing market, remained low at about six per cent in the first three quarters of 2012, down from the eight per cent last year.

However, Mr Khaw said prices remained firm and he attributed this to contributory factors including ample global liquidity and the current low interest rate environment which are likely to persist for a while.

He said his ministry is ready to act when necessary.

– CNA/fa