Capitaland : Executive : Don't Expect Singapore to Introduce More Property-Cooling Measures for Now
07/09/2012| 01:13am US/Eastern
By Chun Han Wong
SINGAPORE--CapitaLand Ltd. (C31.SG), Southeast Asia's largest developer by market value, doesn't expect any fresh government intervention in Singapore's residential-property market for now, despite the recent rise in home prices here, an executive said Monday.
"I think it's unlikely [for the government to introduce fresh market-cooling measures] because the increase [in prices] is not exorbitant," Wong Heang Fine, chief executive of CapitaLand's Singapore residential arm, told reporters. "It's only a slight increase--it shows that the market has stabilized, and it now reflects genuine [housing] demand."
In the second quarter, prices of private homes in Singapore rose 0.4% from the first quarter to hit a fresh peak, reversing a short-lived decline in the previous three months, government estimates showed last week. Prices had eased 0.1% in the first quarter--the first price drop since the second quarter of 2009.
"The residential market is quite resilient because of a few factors--there's good economic growth and very good employment; there's very low interest rates...and high liquidity," Mr. Wong said.
"If all these factors remain in place, Singapore's property market will continue to be resilient and stable," Mr. Wong added.
Write to Chun Han Wong at firstname.lastname@example.org