Government Removes Interest Absorption Scheme and Release More Land for Sale...
Singapore: Measures to pre-empt any speculative bubble from forming in the private property market have been outlined in Parliament by the National Development Minister.
Mr Mah Bow Tan said one of the steps to "temper the exuberance" of the market will be the immediate withdrawal of the interest absorption scheme and interest-only loans being offered for purchases of uncompleted property developments.
He told Parliament that both schemes could encourage speculation in a buoyant market as they lower instalment payments in the initial years.
Pointing out that property purchases are a major long-term financial commitment, the National Development Minister said the removal of the interest absorption scheme and interest-only loans will help make home buyers make careful decisions.
The immediate withdrawal of the interest absorption scheme will only affect new projects and not those which had been offering the scheme until the announcement on Monday.
As for interest-only loans, these will be disallowed with immediate effect.
The House was also told that the Government Land Sales (GLS) programme will be reinstated in early 2010 with the number of confirmed sites to be firmed up at a later stage.
The number of reserve sites in the GLS programme will also be replenished, Mr Mah said, so that the public can be sure of a steady supply of private housing.
The Minister also told Parliament that assistance measures outlined in the Budget earlier to stabilise the property market will not be extended given the change in the market conditions.
- CNA/sf
Mr Mah Bow Tan said one of the steps to "temper the exuberance" of the market will be the immediate withdrawal of the interest absorption scheme and interest-only loans being offered for purchases of uncompleted property developments.
He told Parliament that both schemes could encourage speculation in a buoyant market as they lower instalment payments in the initial years.
Pointing out that property purchases are a major long-term financial commitment, the National Development Minister said the removal of the interest absorption scheme and interest-only loans will help make home buyers make careful decisions.
The immediate withdrawal of the interest absorption scheme will only affect new projects and not those which had been offering the scheme until the announcement on Monday.
As for interest-only loans, these will be disallowed with immediate effect.
The House was also told that the Government Land Sales (GLS) programme will be reinstated in early 2010 with the number of confirmed sites to be firmed up at a later stage.
The number of reserve sites in the GLS programme will also be replenished, Mr Mah said, so that the public can be sure of a steady supply of private housing.
The Minister also told Parliament that assistance measures outlined in the Budget earlier to stabilise the property market will not be extended given the change in the market conditions.
- CNA/sf