Dec. 14 (Bloomberg) -- Singapore is seeking to sell land to add as many as 14,000 new homes in the first half of 2013 as the government moves to prevent excessive gains in home prices after they reached a record this year.
The government will sell 12 private residential sites in the first half that could yield 6,900 apartments, and may sell a further 19 sites where developers could build 7,100 units, the Ministry of National Development said in a statement today.
“There is a currently a large supply in the pipeline to meet the robust demand for private housing,” the ministry said, The new sites are added “to provide adequate supply to meet demand,” it said.
Singapore home prices reached a record high in the third quarter amid low interest rates, raising concerns of a housing bubble. The property market may get “bubbly” even with slow growth and the government won’t allow prices to outstrip gains in incomes, Finance Minister Tharman Shanmugaratnam said at a conference in Hong Kong on Oct. 9.
The additional 19 sites will be sold through auctions, which are triggered by bids that meet the government’s minimum price for the properties. As of the third quarter, about 93,800 homes are being built over “the next few years” with 40,000 units still unsold, the ministry said.
Singapore is also selling a hotel site at Havelock Road at the edge of the city’s financial district, the ministry said. Along with unsold hotel sites in the second half of 2012, the properties will offer a pipeline of 12,000 rooms, it said.
To contact the reporter on this story: Sharon Chen in Singapore at email@example.com
To contact the editor responsible for this story: Stephanie Phang at firstname.lastname@example.org