Redas chief: ‘Many challenges’ in Singapore property sector
The property sector has taken a hit from the latest cooling measures with demand down and buyers of all kinds facing more challenging barriers to get into the market, said an industry leader yesterday.
Mr Augustine Tan, president of the Real Estate Developers' Association of Singapore (Redas), told the group's annual Mid-Autumn Festival lunch that with the market "expected to be sedate" after the new property curbs, analysts expect developer sales for this year to drop 15 per cent to 20 per cent to 8,500 to 9,500 units from last year's levels.
He noted "dark clouds" such as heightened trade tensions and rising interest rates.
"On the property front, the current market condition presents many challenges," he said, although he pointed out that demand for developments in good locations stayed "resilient" and continued to attract interest from first-time buyers and owners of collective sale developments.
Mr Tan urged the Government's policy review to "look at the aggregate impact of the various policies on the property market".
Minister for Social and Family Development and Second Minister for National Development Desmond Lee said at the event the cooling measures were taken to "keep prices in line with economic fundamentals".
He said the Government "acted earlier" to ensure a stable property market.
Mr Lee also urged corporates to play a role in helping the needy: "As social needs grow in complexity, we need to look ahead and galvanise a whole-of-society approach to support and uplift individuals and families who may need more help."
One way is through the Community and Sports Facilities Scheme (CSFS), which gives participating developers a bonus gross floor area (GFA) for community and sports uses over and above the maximum GFA permissible under the master plan for the commercial developments.
Mr Lee also said corporates can establish programmes at white spaces at social service hubs that the Ministry of Social and Family Development will be setting up.
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