NEWS of potential measures affecting the public housing market could come as  soon as next month, hot on the heels of curbs announced on 19 February aimed at cooling the private property market, Minister for National Development Mah Bow Tan said on 21 February.

He was speaking to reporters on 21 February evening at a Chinese New Year event at Tampines East Community Club.

When asked about possible measures for the Housing Board market, Mr Mah said:” We are looking at something.  I’ve asked HDB to look at some of the activity that is going on in the market.”

He added that he would be making” some announcements” during the Committee of Supply debates in Parliament on his Ministry’s Budget next month.

Mr Mah had said late last month that HDB was embarking on a review of its rules to stamp out possible speculation, and that the findings would be out in a few months’ time. 

On 21 February, Mr Mah noted that there was a “high risk” of a property bubble forming in the private homes market.

Last September, the Government announced several measures which led to the sales volume slipping.

Mr Mah said:” if you look at the environment, interest rates are low, there’s a lot of exuberance in the market as a result of positive sentiments.

“If you see a lot of speculation, especially at a time when what we are seeing is a confluence of factors ( such as ) low interest rates, positive sentiment, volumes actually picking up- those are the danger signals.. We have to make a decision.

“The question is, do we act now, take small steps, or wait until the bubbles has formed, by which time we may have to take more drastic steps.  So we decided to act now. It depends on how the market reacts.  If there is a need to, we will take further measures.”

He said there were a few other possible measures the Government could take but declined to elaborate.

“It’s a choice between not doing anything and letting the exuberance take over and then having to act when everything is too late.”

Taking smaller steps means that the number of people affected, especially genuine buyers, will be” very little”, he added

Mr Mah said that given the current market situation, the introduction of a seller’s stamp duty will make speculators” think twice “about flipping properties.

“We are not against prices rising.  If the economy is doing well and there is genuine demand, prices rise.  It’s part of the market workings.

“What we want to see is a very stable sustainable market, that prices don’t run up faster than what the economy can accommodate.”