Expectation of Fifth Consecutive Quarter Rise in Private Property Prices and Plans to Manage Trend

24 Mr Sitoh Yih Pin asked the Minister for National Development (a) whether there is an expectation that the fifth consecutive quarter rise in private property prices will continue in the foreseeable future; and (b) whether there are any plans by the Government to manage this trend.

Mr Desmond Lee: The increase in private housing prices since the second quarter of 2020 reflects broad-based demand for housing, supported by the low interest rate environment. However, the pace of price increases slowed in the second quarter of 2021, with prices increasing by 0.8% quarter-on-quarter, compared to the 3.3% increase in the first quarter of 2021.

As has been previously communicated, the Government’s intent is to ensure a stable and sustainable property market, where prices move broadly in line with economic fundamentals. To this end, the Government continues to monitor economic and property market conditions closely.