Deputy Prime Minister Heng Swee Keat said the government must continue to pay close attention to real estate prices and loan trends to ensure that the increase in housing prices does not deviate from economic fundamentals.
Heng said this at the Chinese New Year event of the Real Estate Developers’ Association of Singapore (Redas). Heng added that this is because there are still uncertainties in the world and interest rates are at a higher level.
“We must guard against a sustained increase in prices that is not backed by income and other fundamentals. Left unchecked, this could impair affordability and lead to a destabilising correction later on,” said Heng.
The Deputy Prime Minister reiterated that the government is committed to ensuring that all Singaporean families can have “homeownership”, but at the same time, it is also necessary for Singaporeans to ensure that they home purchase is sustainable.
“Our commitment is for all Singaporean families to own a roof over their heads, but we must enable them to do so in a financially sound and sustainable way,” he said.
When talking about the economic outlook, Heng said that this year is full of variables, and the Chinese economy is expected to be in the range of positive growth, but this also depends on the trend of the global economy.
He said that the global economy may decline slightly this year, but with China ending its zero-Covid-19 policy earlier than expected, the economy may get a certain boost in the second half of this year, provided that the United States and other advanced economies also continue to stabilise.
In his speech, Redas president Tan Swee Yiow said that the outlook for the year will be challenging in the midst uncertainties and slowing global economic growth. He highlighted the need to address demographic shifts and provide sustainable and inclusive urban solutions, as life expectancy rises and fertility rates remain low.
“We must continue to invest in technology and sustainable solutions to ensure that property development can be undertaken in an environmentally friendly and socially responsible way. It is imperative as well that we continue to collaborate and contribute to youth and talent development,” Tan added.