National Development Minister Khaw Boon Wan’s frequent blog entries about the Singapore property market are making some developers jittery, according to a Straits Times report.
Some property players believe Mr. Khaw’s online blog postings have blurred the line between official policy and personal opinion, said the report.
However, other industry watchers relish the new line of communication, while home buyers welcome the minister’s candour.
One of Khaw’s blog entries announced that 53,000 new homes will be released in the market over the next few years. He also mentioned the construction of approximately 25,000 build-to-order (BTO) flats this year, with the same pace of construction expected to continue next year.
Following his remarks, some property developers and agents have reported slower home sales, while early signs show that land bids have become cautious, as more developers await clearer moves from the Government.
Jonathan Phua, General Manager of Business Development at Tee International, said Khaw’s blog has cast a shadow over Singapore’s property market.
“I think, from now, most developers will be more prudent in bidding for land, and we can expect to see home prices stabilising,” he said.
A managing director of a boutique developer noted that the blog was “too fluid” and “scary”. He expressed that the blog has hinted at more measures and created a cooling effect, possibly reducing the necessity of government intervention.
“There needs to be a clear line on whether his blog is just consultative or official,” he said. “It is not fair to developers and stakeholders to try to keep track. I would prefer a more consistent direction coming from the National Development Ministry instead.”
The report from ST suggests that the blog’s address (mndsingapore.wordpress.com) indicates that Khaw’s entries are written in his capacity as a minister, rather than from his personal standpoint.
Other developers are less worried about the blog, saying that the introduction of social media means faster dissemination of information is inevitable.
Teo Hong Lim, Executive Chairman and Chief Executive of Roxy-Pacific, said the foundation of the government policy to attain a stable market has not changed. He said that the blog provides another mode of communication that makes the minister more accessible.
He stressed that Roxy-Pacific has always adopted mid- to long-term planning strategies to bring it beyond any possible changing sentiments or short-term measures caused by Khaw’s blog.
“There are ways that we can manage our risks. For example, we can choose to buy freehold land to differentiate ourselves from government land sales sites or buy sites in locations where HDB flats will not be built…life goes on,” said Mr. Teo.
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