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Economic health, not cooling measures, the ‘key issue’ for S’pore property

SINGAPORE — The future of Singapore’s property market is not dependent on cooling measures, but rather, the overall state of the economy, which faces a challenging road ahead, said Minister for National Development Lawrence Wong yesterday.

SINGAPORE — The future of Singapore’s property market is not dependent on cooling measures, but rather, the overall state of the economy, which faces a challenging road ahead, said Minister for National Development Lawrence Wong yesterday.

“I know you are fixated on the cooling measures now, but that is not the key. The key issue is that Singapore continues to sustain itself as an exceptional nation, with a thriving economy,” said Minister Wong at the ERA career advancement day yesterday.

Multiple rounds of cooling measures, as well as the Total Debt Servicing Ratio, have had their intended effect of bringing prices down, leading to calls from developers for some of the curbs to be lifted.

The government, however, has stated repeatedly that it is too early to ease the measures, as doing so could result in a market rebound.

“At the end of the day, the long-term prospects for the property market in Singapore are not dependent on cooling measures. It is linked to the overall state of our economy,” he added. “The road ahead is not going to be easy, it is going to be challenging and it may be even more difficult than the last 50 years.”

To cope with these challenges, Mr Wong advised the real estate sector to focus on innovation, creating value and prepare themselves for “potentially disruptive changes” arising from technological advancements.

He noted how a new generation of consumers, who are more educated and savvy, are now conducting their own property transactions. Although the numbers are still small, there has been an increasing proportion of “DIY (do-it-yourself) HDB resale transactions” over the years, he said. “The trend will continue because of consumer preference, because of technology,” he added. ANGELA TENG

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