PRs not only factor affecting flat demand

The increasing number of foreigners and permanent residents is not the only factor driving HDB flat demand, said National Development Minister Mah Bow Tan yesterday.

He stressed that the “sentiment-driven nature of the market” and the broader economic forces in the country contribute to overall flats demand.

For instance, the recent increase of property prices reflects low interest rates and improved economic sentiment, said Mr. Mah.

The uncertain economic outlook in the first six months of last year also resulted to the cutting back of HDB flat supply.

“We take a long-term view, but we also need to be cognisant of the short term. We have to be very flexible and view our housing supply in a very pragmatic manner,” the Minister said.