Better balance between sellers and buyers in residential market: Minister Khaw Boon Wan

Flats being constructed in Punggol on Aug 10, 2014. -- PHOTO: BLOOMBERG
Flats being constructed in Punggol on Aug 10, 2014. -- PHOTO: BLOOMBERG

SINGAPORE - The residential market in Singapore has achieved a better balance between buyers and sellers, Minister for National Development Khaw Boon Wan said in a blog post on Friday.

He said that 2014 was the first full year which saw home prices in decline, "as supply-demand rebalances".

"This was a great relief for home buyers. As the decline was moderate, it was also a relief for home sellers and home owners," he said.

He also said that the current situation was the result of four years of hard work in ramping up new home construction. A collapse of housing market benefits no one, he added.

It was projected that there would be a total of 200,034 new homes between 2014 and 2017, but with the tapering of the Housing Board's Build-To-Order supply, Mr Khaw said that the new figure stood at 195,788.

"Our current stock is about 1.28m housing units: 960,000 in HDB; 320,000 in private sector. By early 2018, our stock would have grown to 1.43m housing units, an increase of about 11 per cent," he wrote.

jalmsab@sph.com.sg