Property market must remain stable so young Singaporeans can own homes: DPM

SINGAPORE Deputy Prime Minister Heng Swee Keat said the government is paying "close attention" to the local real estate market "to ensure that it remains stable".

This is because "we must continue to enable young Singaporeans to own their homes and fulfil their aspirations", Mr Heng noted on Monday at the 61st anniversary celebration of the Real Estate Developers' Association of Singapore (Redas).

He pointed to rising asset prices around the world despite the economic impact of the Covid-19 pandemic. Likewise, Singapore's local property market is "starting to see renewed positive sentiments and some gathering of momentum in prices", added Mr Heng, who is also Minister for Finance.

"We will remain vigilant as the economic outlook remains very uncertain. We do not want to see the property market run ahead of the underlying economic fundamentals."

Mr Heng's comments came hours after National Development Minister Desmond Lee said at another event that the government is monitoring the property market "very closely".

The government will adjust policies if necessary to maintain a stable and sustainable property market for Singaporeans, Mr Lee said on Monday morning.

Private housing prices have picked up pace since the second quarter of 2020, even as the economy entered a downturn while the Covid-19 outbreak escalated. Developers are also expected to continue their new project launch momentum this year.

In the public housing segment, overall resale prices increased by 6.4 per cent in 2020, much more than the 0.3 per cent rise in 2019, according to flash data from real estate portal SRX released this month.

Separately, Mr Heng noted on Monday that the built environment sector's Industry Transformation Maps will need to be refreshed. The sector also needs to "explore how we can work and collaborate differently to innovate better", he added.

In addition, the built environment needs to be made more climate-resilient. The Cooling Singapore project, part of the country's network of global research partnerships, seeks to better understand the urban heat challenge, which then helps with the development of innovations.

"New solutions could include the use of cool paints and reflective glass coatings to lower absorption of heat energy from the sun," Mr Heng said in his speech.

"If the sector can grow its capabilities in sustainability, it will give you a competitive edge when you expand overseas."

He added that he hopes to see the industry taking the lead, beyond the government's investment in the research efforts.

Also speaking at the event, Redas president Chia Ngiang Hong pointed out that environmental issues, such as warmer temperatures, rising sea levels and extreme weather, will damage properties and critical infrastructure as well as deteriorate human health and productivity.

Therefore, it is important that property developers rethink the design, purpose and sustainability of buildings and the environment, and how to shape a greener, more resilient sector fit for the future, Mr Chia said.

"Rising demand for safer, healthier and more sustainable buildings will shape the real estate sector and the infrastructure trends moving forward," the Redas president noted.

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes