In an attempt to lobby for the removal of property cooling measures, the President of Real Estate Developers’ Association (REDAS) Augustine Tan said that property prices cannot drop too “deeply” without affect quality.

“Prices cannot drop too deeply without affecting the quality of our products and operational obligations. Having made significant progress in the standard of our built environment, it is no longer possible to look back.”

Speaking at the REDAS anniversary dinner, the Far East Organisation executive director told his audience, including government officials and Finance Minister Heng Swee Keat, that prices of private residential projects launched within the past two years have fallen by 11%, with some projects going through multiple price cuts. Also in his speech, Augustine Tan directed his concerns to the government officials about the growing stock of unsold housing units and rising costs. According to director of the property developer conglomerate Far East, Singapore may have a housing oversupply problem.

Also speaking at the dinner was Finance Minister Heng Swee Keat, who emphasized on a “stable and sustainable property market”. The Minister however avoided indicating whether if current property prices are over-valued, and much to the disappointment of the property developers, did not hint about any possibility of removing the cooling measures.

An independent survey recently done by UBS put Singapore as a “bubble-risk” economy over its housing prices and ranked Singapore as the 4th most expensive city in terms of housing affordability.

Contrary to what REDAS claimed, quality of housing in Singapore are largely regulated under Building Construciton Authority (BCA) standards. Falling property prices only affect the profits of the developers as construction workers in Singapore are still the cheapest among developed countries.