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Source:
www.gov.sg |
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SPEECH BY MR MAH BOW TAN, MINISTER FOR NATIONAL
DEVELOPMENT AT REDAS¡¯ 46TH ANNIVERSARY DINNER |
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An Excerpt |
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In 2004, prices of private housing began to
stabilise after 4 consecutive years of decline. In 2004 and the first
half of 2005, prices increased by an average of 0.4% per quarter. |
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After the July policy changes, prices rose
by 1.2% in 3Q2005, the highest increase in a single quarter in the past
5 years. |
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In tandem with the recovery in prices,
demand for private housing has also improved significantly. For the past
2 years, about 1,200 new units were sold per quarter. |
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Demand started to pick up in 1H2005, with
1,900 new units sold per quarter. In 3Q2005 after the policy changes,
demand continued to put up a strong showing with 2,200 new units sold. |
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The property market recovery is not confined
to the private housing sector. All the other sectors of the property
market are recovering in tandem with the strong growth of our economy. |
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HDB resale market prices stabilised in 3Q05,
decreasing marginally by 0.4% compared to the 4.8% decline in the 2nd
Quarter, which was triggered by the introduction of anti-cashback
measures in April 2005. |
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Cashback practices had artificially inflated
HDB resale flat prices, and flat buyers in cashback scams were eroding
their CPF savings and taking on higher financing risks. The anti-cashback
measures have since helped to restore prices closer to their actual
levels. |
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In the office sector, the vacancy rate has
fallen from 17.9% at the end of 2003 to 13.4% in 3Q2005. In the shop
sector, the vacancy rate has decreased from 9.8% in 1Q2004 to 8% in
3Q2005 as retail sales increased. In the hotel sector, the average
occupancy rate improved from 76% in Dec 2003 to 85% in Sep 2005 with
increased tourist arrivals. |
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Last month, the consortium that was awarded
the Business and Financial Centre site took up 244,000 sqm of space for
the 1st phase of the project, almost 2.5 times higher than the minimum
100,000 sqm required. This is another indication of increased confidence
in the property market. |
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Property Market Reflects Economic
Fundamentals |
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All sectors of the property market are
showing signs of improvement at the moment. However, whether the
recovery can be sustained will depend on several fundamental factors,
including the performance of the economy as a whole, the supply and
demand situation, financial liquidity and interest rates and the
external environment. |
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The overall economy has been doing well.
According to MAS, GDP growth for the whole of 2005 is likely to be at
the higher end of MTI¡¯s growth forecast of between 3.5% and 4.5%. |
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In 2006, Singapore¡¯s GDP is projected to
grow by another 3% to 5%. Robust growth in the manufacturing, tourism
and financial sectors, and the diversification of our economy into new
areas like the life sciences, education and health, are helping to drive
growth in our economy. |
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Externally, regional economies such as
China, India and the ASEAN countries are all enjoying good economic
growth. As their trading and investment partner, Singapore will benefit
from the growth in the region. |
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All of this has translated into job
opportunities on the ground. About 78,000 new jobs were created in the
first 9 months of 2005. This pace of job creation is the highest
recorded since the economic boom of 2000. |
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With more new jobs created, the unemployment
rate has also improved from 3.4% in June 2005 to 3.3% in September.
Initial fears that the economic recovery would be a jobless one have
been unfounded. |
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The improvement in the property market is
thus backed by economic fundamentals of rising demand, income and jobs.
If the overall economy continues to do well, the recovery in the
property market is likely to be sustained. |
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Full Text of Speech |
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Source:
www.gov.sg Media Release 7 Nov 2005 |
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FrontPage Edition: Thu 10 Nov 2005
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