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The withdrawal of the deferred payment scheme for property should not unduly affect genuine homebuyers as they can continue to get home loans from banks, National Development Minister Mah Bow Tan said in Parliament on Monday.
Instead, it would dampen speculative activity and encourage buyers to be more prudent with their finances. Over time, it will encourage the property market to grow in a 'more healthy and sustainable manner', said the minister.
The scheme, which allows people to purchase property with a downpayment and pay the rest upon the completion of the project, has been used by 'flippers' as a speculative tool.
After it was srapped on Oct 26, buyers have to make progressive payments in step with the construction process of their development.
Mr Mah stressed that, at the end of September, there was a stock of 65,000 private homes in the pipeline, so there was no reason for Singaporean home buyers to panic.
He said, in response to a question by MP Ho Geok Choo, that the Government will closely monitor the market to ensure that prices are supported by economic fundamentals.
It was not considering any new measure for the market at the moment, said the minister.
Replying to MP Madam Cynthia Phua on meeting the demand for homes, Mr Mah said that the HDB was ramping up its building programme.
He added, however, that the HDB could not meet all new demand for flats, and that some of these buyers would have to turn to the resale market.
If the HDB built to meet all new demand, it would create an oversupply problem should these homeowners want to sell their property in the future.
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