Just as Macau has recently experienced an upsurge in property prices, moves by the Government in Singapore may fuel the same increase there. Earlier this week the rules governing the property market were relaxed after a comprehensive policy study at the Ministry for National Development. The Minister, Mr Mah Bow Tan, speaking on 19 July, stated that the re-tuning of policies from time to time was necessary to ensure their continued relevance to broader social and economic benefits.

The policy review initiated by the government covered three major areas: caps on bank financing for residential properties; limits on the use of Central Provident Fund (CPF) for property purchases; and restrictions on foreign ownership of lands and properties. Measures that will be put in place over the next few months include lowering the minimum cash deposit and raising the proportion of a property’s value that can be borrowed. Some restrictions on foreign ownership of property will also be relaxed.

The government does not expect the new measures to influence the property market in either direction but others are not so sure. Should prices rise steeply, particularly in the light of the new casino resorts, then the government would take steps to stop releasing land for development, but any intervention would be under exceptional circumstances. Companies interested in the tender for the integrated casino resorts at Marina Bay and Sentosa Island will submit their proposals in detail before the end of September and the Government should make a decision by early 2006 at the latest. The whole Central Business District will be upgraded in keeping with the new development at Marina Bay. (E-07.21.05)

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