Land supply should be at a pace that would contribute to the overall health of the market

CHALLENGES in the real estate market continue to worry association members, said Chia Boon Kuah, president of the Real Estate Developers Association of Singapore (Redas), at its 54th annual dinner last night.

"Against a backdrop of market volatility and a maturing real estate cycle, we have had to manage the unfolding effects of the government's seventh round of cooling measures, and the introduction of the total debt servicing ratio.

"The substantial physical supply of real estate coming onstream, especially with the completion of projects presently under construction, and the expiry of the lock-in period of the seller's stamp duty, from now to 2017, continues to weigh on our mind."

It is Redas's hope that the government would calibrate its land sales programme to ensure land supply is injected at a pace that would contribute to the overall health of the market, said Mr Chia, who reaffirmed Redas's commitment to work closely with the government to plan for the various scenarios that the market might take.

National Development Minister Khaw Boon Wan also acknowledged the efforts of private developers in a video screened at last night's event, which was themed "Partnership in Nation Building". Noting that developers have been a strong partner in helping develop the nation, Mr Khaw said that "developers can justifiably be very proud of their contribution to the transformation of Singapore city".

"But, a lot of work lies ahead, and I look forward to our continuing partnership," he said.

Conceding that the tight labour situation is a key challenge for the sector, Mr Khaw believes that the only sustainable strategy is to increase productivity.

"In particular, developers can incentivise and actively work with their consultants and builders to adopt more productive construction methods," said Mr Khaw, in the Redas 54th Anniversary commemorative booklet.

Separately, Redas said that the Redas Foundation, a charitable fund managed under the Community Foundation of Singapore, will raise funds for community programmes and activities run by charities here to help the needy, in particular the children and the elderly.

Redas will donate $100,000 each to the Arc Children's Centre, an organisation that gives care and support to children with serious illnesses, and the Alzheimer's Disease Association.

Mr Chia, who was elected president of Redas last year, will have to relinquish his post when he leaves Far East Organization next year, given that membership of the management committee is tied to the company and not the individual.

Following his resignation as Redas president on his last day at Far East, the Redas management committee can appoint a replacement for the remainder of the term.

Source: 2th November 2013 Business Times

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Land supply should be at a pace that would contribute to the overall health of the market

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