enough people to occupy these flats?

This is the threatening question about the overbuilding of HDB flats and how a good housing programme went wrong. And the rest is history. I will like to modify this statement to read, 'Enough people to buy these stocks?' The problem facing a glut of HDB flats and private properties in the market is the same as that facing the stockbroking industry. It is another case of oversupply and lack of participants. The stock indices are going up, other stock markets are going to the roof, but you can hardly hear a phone ring in the trading rooms of all the broking houses. A very similar situation as the housing market. Many flats were built. But where are the takers. In the stock market, there are many stocks and many derivatives, but where are the investors? There are many rich people in Singapore, but are they buying HDB flats or even private flats? Yes a few may buy the exclusive upmarket condo or landed properties, but the general market is silent. The same in the stock market. A few hedge funds and house players are in the market. And that is all. The whole market is deserted. The property market will suffer a fate of a slow death when the value just melt away. And so will the value of stocks when there are no buyers but plenty of stocks and other instruments available. The slow death has started. The holding cost for all the unsold flats is just too high. The overheads for running a broking house is equally high if there are no investors. And the funds will also have holding cost if what they bought cannot be sold, except from left hand to right hand and back.


abao said...

That's why they want to expand the population to 6 million through importing people to Singapore, to maintain the market size.

redbean said...

there are economic reasons to want a bigger critical mass. is there a need to rush to attain that number at all cost and bring about so much problems, even threatening to break up the social fabric of a nation?

what kind of nation will we become if the bulk of the citizens are foreigners, new citizens or just prs? do we really want to turn our home into a hotel, an abode of convenience?