There are signs that the property market and rental prices are stabilising, said Minister for National Development Desmond Lee.

Speaking at Forward Singapore: Our Housing Conversation on Jul. 30, Lee gave an update on the housing situation in Singapore, and he shared conversations and topics others have shared regarding their housing needs.

Progress on housing supply

Lee shared that the government has stepped up in increasing the supply of public housing, where they launched 50,000 since 2021 and are on track to launch another 50,000 by 2025.

In addition, they have ramped up the Government Land Sales Programme, paired with the recent rounds of cooling measures, which will help to keep private property price momentum in check.

HDB has also caught up on 70 per cent of the delayed flats caused by covid-19, and in the first half of 2023, it delivered 13,400 keys to new homeowners, which was double the number as compared to the same period in 2022.

For the first time in three years, the overall private housing prices declined in the second quarter of 2023.

Public housing resale prices have also shown signs of moderation, with slower growth from the first to the second quarter of 2023 compared to the average quarterly growth in 2022.

Cooling measures

The government also implemented cooling measures, including raising the Additional Buyer's Stamp Duty (ABSD) rates with effect from Apr. 27, 2023.

At the time, Lee said the government wanted to ensure a stable and sustainable property market, and provide greater priority and support to Singaporeans who are buying homes for owner-occupation.

At the Jul. 30 event, Lee said that the cooling measures are starting to moderate the market, but more time will be needed to see the full impact.

Signs that the market is calming

"These are signs that the market is calming. We will continue to monitor the market closely and will take whatever steps may be needed to ensure that the market doesn't run ahead of fundamentals," said Lee.

The government made moves to enhance the affordability and accessibility of public housing by increasing the CPF Housing Grant for first-time homebuyers intending to purchase an HDB resale flat.

Rental rates are also showing signs of stabilising due to the ramp-up in the supply of new housing and the significant number of residential units that will be completed, helping to ease the situation.

"Overall, it has been a very rough three years since covid-19 hit us, but we have made progress in stabilising the housing market and have now started to turn the corner," said Lee.

Conversations to dive deeper into other buyer groups' needs and aspirations

Lee shared that home ownership continues to resonate strongly with an overwhelming preference to buy one's own home.

"This is our Singapore DNA- we are a nation of homeowners."

In addition, while people accepted that some investment in residential property is required in order for the rental market to exist, many support housing, especially public housing, should be principally for people to live in, and they support measures to enhance the concept of owner-occupation.

Lee also brought up the Draft Master Plan Review by the Urban Redevelopment Authority (URA) that will be launched later in 2023. The Master Plan will detail land use and developmental plans for the whole of Singapore, building upon the Long-Term Plan that we developed last year.

"Housing will be an important focus area. As we plan new towns and rejuvenate older estates, we ensure that there will be range of housing options to meet and balance the diverse needs of Singaporeans."

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Top photos via Desmond Lee/Facebook & Unsplash