SINGAPORE - Transaction volumes in the public and private housing markets have moderated in the past month following the Sept 30 round of property cooling measures.

This could be an early indication of a moderation in momentum in both markets, National Development Minister Desmond Lee said at the Real Estate Developers’ Association of Singapore’s (Redas) 63rd anniversary dinner on Monday night.

He reiterated that the property cooling measures introduced in December 2021 and in September this year were aimed at moderating demand and ensuring prudent borrowing.

“We moved on these measures given the clear upward momentum in prices across the HDB resale market and the private property market, despite the uncertain economic outlook,” he said.

“If left unchecked, prices are likely to run ahead of economic fundamentals and outpace the growth in income. This will increase the risk of a destabilising correction later on that will hurt many households and businesses.

“Therefore, we moved decisively but carefully to roll out the cooling measures, being cognisant of the uncertain global economic outlook and rising interest rate environment.”

Mr Lee added: “As the latest cooling measures were introduced only in end September, let us continue to keep watch on their impact.”

Redas president Chia Ngiang Hong noted that although the worst of the pandemic seems to be over, “many economies and businesses continue to face tough challenges and uncertainties due to inflationary pressures, geopolitical tensions and rising interest rates”.

“Over the medium term, there could be unexpected risks that may disrupt economic prospects and growth,” he added.