No drastic price drop for HDB flats: Khaw Boon Wan
He acknowledges that flats are an asset for many homeowners
Addressing fears that homeowners may lose their retirement nest eggs should prices of flats plunge, National Development Minister Khaw Boon Wan said on Sunday that he wants to lower the prices of flats by just "a few per cent" over the next few years.
Mr Khaw did not specify if he was referring to new or resale flats, but he acknowledged that any price drop should not be too drastic.
"For many people, it's an asset... if their house suddenly devalues by say 30 per cent, their dream of downgrading and still having some money in the bank (for retirement) will suddenly vanish," he told participants at an Our Singapore Conversation (OSC) dialogue on housing.
Speaking in Mandarin, he reiterated that the prices of public flats will not rise forever. "If housing prices keep rising, it won't be good. If we can maintain them or even lower them by a few per cent, for example 5 per cent, that's good. When I came into MND (Ministry of National Development) two years ago, that was my target," he said.
NEST EGG AT STAKE
For many people, it's an asset... if their house suddenly devalues by say 30 per cent, their dream of downgrading and still having some money in the bank (for retirement) will suddenly vanish.
- National Development Minister Khaw Boon Wan