Supply limit to boost Singapore house prices

PUBLISHED : Monday, 20 October, 1997, 12:00am
UPDATED : Monday, 20 October, 1997, 12:00am

The Singapore Government's move to limit the supply of private residential property should lead to a rise in house prices, property consultants Century 21 Singapore says.

Director Eunice Yap said the government would limit the supply of new units to 5,000 next year. About 7,000 are expected to be released on to the market this year.

The Singapore residential property market has been in a slump - particularly in the market for new projects - since the government introduced anti-speculation measures last year.

A Keppel Land-developed project in Singapore's Jurong area, the Mayfair, now being marketed in Hong Kong, is selling below secondary market prices in its area.

Soh Liang Liang, assistant marketing manager for Keppel, said the average unit price at the 452-unit Mayfair development was about S$600 (about HK$2,973) per square foot. Average prices at the near-by three-year-old Parc Oasis condominium development were about $650 per sq ft.

The small number of new projects in Jurong will help future secondary market prices - the Mayfair is not expected to be completed for three years.

Private condominiums compared favourably in price to Housing Development Board units in Jurong, which are selling for between $400,000 and $650,000, Ms Yap said.