MINISTER for National Development Mah Bow Tan hopes that withdrawing the deferred payment scheme could cool the overheating market and discourage excessive speculation. Pointing out that the scheme was introduced in 1997 when property prices were depressed, he said that the situation was very different now.
The move could temper the market which ‘has shown signs of overheating’, he said. And while the government would prefer not to interfere, it is monitoring the market and would step in if necessary.
Its preference, he said, was to ensure that there was sufficient supply in the market and inject more, if necessary. ‘We want to make sure the market is a stable and healthy one,’ Mr Mah said.
The minister also said that he was not concerned about the rise in the HDB resale price index as it had been lagging behind the market for a while. ‘HDB flat owners can look forward to higher prices. They are holding a more valuable asset if they wanted to cash out or finance their retirement,’ he said.
Source : Business Times - 27 Oct 2007