MARKET elasticity in Singapore's private housing sector will act as a prop as the Government continues releasing land parcels for development.
'There's not going to be any crash, that's a typical overreaction,' Jones Lang Wootton's Alan Choo said.
'We tend to overreact, particularly when the securities houses say there is going to be a drop of 25 per cent, or some other figure.' Mr Choo defended government moves to release more land on to the market, given that tight supply would inevitably lead to further price increases in the sector. But he acknowledged that some of the originally proposed land-parcel launches may have been curtailed.
'The government has already held back on about five per cent of intended land releases for 1995, a fact that has not been widely publicised,' Mr Choo said.
Two tracts of land that had not appeared for tender were at Mandai and Mount Faber.
If that was the case, then market projections for private housing supply over the next few years would be vastly inflated.