Impact of Surge in Chinese Developers in Residential Property Market in Past Five Years

Assoc Prof Daniel Goh Pei Siong asked the Minister for National Development whether the surge of Chinese developers in the residential property market in the past five years has caused problems in property speculation, over-pricing of land sales and poor construction quality.

The private residential property market has largely been stable over the last five years. But there was a brief surge in property prices from 2H2017 to 1H2018 as market sentiments improved. Developers, both local and foreign, were bidding more aggressively for land. So this bidding behavior was not limited to Chinese developers, who accounted for less than 10% of the private residential sites sold via the Government Land Sales programme and en-bloc sales during this period. In terms of prices, the winning bids by Chinese developers were also comparable to those of other developers.

In terms of construction quality, one objective measure is the Construction Quality Assessment System (CONQUAS) administered by the BCA. The average CONQUAS score for private residential projects has been increasing over the years, and has remained high over the last five years. The average CONQUAS score for projects by Chinese developers is comparable to that of the national average.

The Government will continue to monitor trends in the property market, and adjust our policies as necessary, to provide good quality homes, and maintain a stable and sustainable property market.