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Govt cautious in bringing housing market to ‘soft landing’: Khaw

SINGAPORE – Mindful of the impact of a housing market crash, National Development Minister Khaw Boon Wan said today (March 10) that the Government will be cautious in bringing the market to a “soft landing”.

SINGAPORE – Mindful of the impact of a housing market crash, National Development Minister Khaw Boon Wan said today (March 10) that the Government will be cautious in bringing the market to a “soft landing”.

While median household income has caught up with HDB resale prices, Mr Khaw noted that the market is still in transition. “It is a time that calls for vigilance and nimbleness. We will be careful,” he said during the Ministry of National Development’s Committee of Supply debate.

Mr Khaw said that HDB resale prices peaked in 2013 and they have since eased to 37 per cent above the 2009 level. Over the same period, median household income has risen by 38 per cent.

Graphic: Ministry of National Development

With the previous HDB resale market trough in 2005 as the base, resale prices have gone up by 87 per cent between 2005 and last year. Over the same period, household income has gone up by 72 per cent. “So we are not yet at the 2005 affordability level; there is still a gap. Whether we use 2009 or 2005 as the base year, the situation today is very much better than in 2011. Our efforts in taming the housing market have seen results,” he said.

Graphic: Ministry of National Development

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