Be more prudent when purchasing property, urges Khaw

Minister for National Development Khaw Boon Wan has advised Singaporeans to be prudent when purchasing property.

With the wide range of housing options, prospective buyers should choose wisely and buy within their budget.

Mr Khaw said this in response to a question raised by Pasir Ris-Punggol MP Gan Thiam Poh on whether there were plans to review the current HDB flat pricing policy to make sure public housing remains affordable for Singaporeans.

“The current low interest rate will not stay low forever. Any global economic recession may also affect their (Singaporeans’) jobs,” he said, citing the deteriorating global economic situation as one reason to be wary.

“On the other hand, existing HDB owners should refrain from cashing out their flats without thinking through their subsequent housing plans.”

Mr Khaw added that several Build-to-Order (BTO) launches, since May, had stabilised new HDB flat prices. For newlywed first-timers, BTO prices have remained affordable.

Regarding second-timers, the minister commented that “the issue is more complicated as they rely more on the resale market and our influence over the resale market is indirect.”

“The current resale prices are the results of an imbalance in supply and demand. We are taking active steps to re-balance them, but we need time,” he noted.