Do more to prevent property bubble
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May 10, 2010 - ST Forum
Do more to prevent property bubble
I REFER to last Friday's article, 'Most flats sold with low cash upfront: HDB'. I believe this trend is not healthy as it indicates that valuation figures for HDB flats have finally caught up with the recent years' soaring HDB resale flat prices.
From these soaring prices, no one would have believed that we went through and are still recovering from an economic downturn. A three-room HDB flat in Tanjong Pagar Plaza was going for $280,000 in 2008, but in just two years, it is now going for more than $400,000.
The younger generation of Singaporeans and even their parents are feeling that an HDB resale flat is no longer within their means.
Generally, new job entrants who are thinking of starting a family would rather buy a resale flat in mature estates than a new flat in the outskirts. This is to cut down on the time taken for their daily commute to work, particularly if they have young children that they need to take to grandparents' homes or childcare centres each day.
I notice that the Ministry of National Development and the Monetary Authority of Singapore have been taking sporadic measures to curb the sharp increases in property prices, but the impact is not really visible. I understand that the Government has to balance the needs of different groups - investors who wish for property prices to rise, and home buyers who are averse to soaring prices.
The Government should take more comprehensive preventive measures to curb a property bubble, rather than resort to remedial actions when a bubble forms or bursts.
Recent strong measures taken by the Chinese government to curb undue property speculation have sent a strong signal to potential speculators that the Chinese government means business. These measures have also done much to reassure the public. I wonder if our Government has taken sufficient measures to do the same.
Ong Boot Lian (Ms)
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wait long long...
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If you refer to the HDB resale price index, which new HDB valuations are based on, the prices of housing in Singapore has been increasing a few percentage points each quarter. The soaring price index doesn't look like it's gonna come down anytime soon. In fact, it's almost guaranteed not to come down, since MM Lee had predicted so. And we know that somehow, the old MM Lee is right more often than not.
Furthermore, MND came out with figures to justify the current prices as affordable, so no government intervention is necessary. Anyway, they have also produced figures to show that the Singaporean household income has increased FASTER THAN the the increase in HDB prices over the past 10 years, so HDB prices could in fact rightfully be even higher.
Plus, at least according to our PM, the government cannot do anything even if the prices keep rising, since price movements are due to market forces (supply and demand). That is to say, the government cannot fix HDB prices just because there are not enough HDB flats (supply) and too many people looking for flats (demand), both of which are implied to be beyond control.
What the government is saying is that they won't do much, if anything at all, to prevent a bubble. In fact, they are saying there is no bubble. Prices will continue to rise, and justifiably so, as the market moves towards its price equilibrium. And anyway, Singaporeans are still well able to afford HDB flats, with their income increase outpacing HDB price increase!
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Originally posted by godchuanz:
If you refer to the HDB resale price index, which new HDB valuations are based on, the prices of housing in Singapore has been increasing a few percentage points each quarter. The soaring price index doesn't look like it's gonna come down anytime soon. In fact, it's almost guaranteed not to come down, since MM Lee had predicted so. And we know that somehow, the old MM Lee is right more often than not.
Furthermore, MND came out with figures to justify the current prices as affordable, so no government intervention is necessary. Anyway, they have also produced figures to show that the Singaporean household income has increased FASTER THAN the the increase in HDB prices over the past 10 years, so HDB prices could in fact rightfully be even higher.
Plus, at least according to our PM, the government cannot do anything even if the prices keep rising, since price movements are due to market forces (supply and demand). That is to say, the government cannot fix HDB prices just because there are not enough HDB flats (supply) and too many people looking for flats (demand), both of which are implied to be beyond control.
What the government is saying is that they won't do much, if anything at all, to prevent a bubble. In fact, they are saying there is no bubble. Prices will continue to rise, and justifiably so, as the market moves towards its price equilibrium. And anyway, Singaporeans are still well able to afford HDB flats, with their income increase outpacing HDB price increase!
we understand very well how our Government justifies itself to be correct
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Originally posted by BanguIzai:
we understand very well how our Government justifies itself to be correct
so true...
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Originally posted by Clivebenss:
so true...
It's true, but realistically you won't be able to do anything about it. In fact, most people won't think there's anything wrong with the government. These are the values of Singaporeans: at home, your parents are always right. At work, your bosses are always right. In Singapore, the government is always right.
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Originally posted by godchuanz:
It's true, but realistically you won't be able to do anything about it. In fact, most people won't think there's anything wrong with the government. These are the values of Singaporeans: at home, your parents are always right. At work, your bosses are always right. In Singapore, the government is always right.
more propaganda.
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Originally posted by godchuanz:
It's true, but realistically you won't be able to do anything about it. In fact, most people won't think there's anything wrong with the government. These are the values of Singaporeans: at home, your parents are always right. At work, your bosses are always right. In Singapore, the government is always right.
unfortunately, we're starting to wake up...politicians are all scumbags and what makes up the gabrament?
anyway, HDB places are all TENEMENTS!!
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Originally posted by the Bear:
unfortunately, we're starting to wake up...politicians are all scumbags and what makes up the gabrament?
anyway, HDB places are all TENEMENTS!!
expensive but "affordable" tenements.
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I reckon we will see more and more newly registered posters extolling the virtues of the present system.
Once that hits a peak, we know election time is near.
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I know election is coming when I see kovan food centre undergo renovation. The last time was before the last election. Guess whose area is that.
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There is no property bubble because of low COV.
O RLY?
http://theonlinecitizen.com/2010/05/low-cash-upfront-true-or-false/