Debated in Parliament on 14 Nov 2012.
The following question stood in the name of Er Dr Lee Bee Wah –
To ask the Minister for National Development in light of HDB resale prices rising to a high in the third quarter of this year (a) whether the HDB resale market has shown any signs of stabilising; (b) whether there is any cause for concern; and (c) whether the Ministry will consider introducing measures to moderate the prices of resale flats.
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Question No 2, Sir.
Sir, the HDB resale market has shown signs of stabilising. Yearly Resale Price Index (RPI) growth has come down from 14.1% in 2010 to 10.7% last year and to 3.9% in the first nine months of this year. Nonetheless, the uptick in quarterly RPI growth to 2.0% in the third quarter shows that while things are improving, we still have some way to go.
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We have implemented a number of measures but they will take some time to work their way through the market. For example, the global low interest rate environment will take some time before it returns to its normal level, and the huge local supply of new housing units will only be available over the next two, three years.
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