Singapore Real Estate and Property

Monday, May 26, 2008

Property prices expected to moderate

May 24, 2008

Property prices expected to moderate

THE Singapore property market has peaked and prices can be expected to moderate in the next two years, the Government said yesterday.

Prices had surged in the past two years because of a supply-demand imbalance, said Mr Ravi Menon, the Second Permanent Secretary of the Ministry of Trade and Industry.

'The market has been tight across various segments as supply was slow to respond when demand surged in the past couple of years,' he said yesterday.

However, he felt that the market had already reached its peak.

'There is supply coming online in the next few years that will offset some of the demand, and expectations are for moderation over the next one or two years.

'This will provide some relief in terms of cost pressures, which is important when it comes to controlling inflation.'

NICHOLAS FANG


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