28 Nov '12, 10pm

Govt must make tough decisions on land supply #PR

The Ministry of National Development (MND) will find it hard deciding on land supply to be allocated for private housing projects in 1H2013, said property experts. It will have to balance several factors such as looming supply glut, record home sales, an economic slowdown and developers’ keen appetite for land. “The quandary the authorities will face is that in the short run, demand chases supply. However, in the long run, the laws of supply and demand do influence prices, especially when the supply becomes physically completed,” said Alan Cheong, Research Head at Savills Singapore. “Some have thus argued a bearish case from 2014 onwards, with 18,350 private homes expected to be completed in that year alone. That implicitly means supply should be curtailed early to prevent any price mishaps.” But if the government were to restrict supply at a time when home prices are stil...

Full article: http://www.propertyguru.com.sg/property-management-news/2...

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