21 Apr '12, 4pm

Increasing land supply ineffective in controlling property prices ...: Increasing the supply of land as part of

Increasing land supply ineffective in controlling property prices ...: Increasing the supply of land as part of

SINGAPORE: Increasing the supply of land as part of the government land sales programme may no longer be effective to control property prices. This according to analysts who say that developers are becoming more creative in developing hot selling projects. It also means that property prices may continue to remain high due to strong demand for such projects. The government's latest release of six sites for residential development are expected to generate strong interest from developers. Last year, a record number of 35 land parcels for private residences were put out for sale by the government. But increasing the supply of land may not cap property prices. Nicholas Mak, executive director, Research, SLP International, said: "Developers through their innovative design and so on, are increasing the elasticity of demand. In other words, whatever the government can push out, de...

Full article: http://www.channelnewsasia.com/stories/singaporelocalnews...

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