4/25/2007

Taking on a bigger role

After spending time at the St James Station partying with the young PAPs and explaining the ministerial hike to the Press, LKY came out to address the fear of the Indon Extradition Treaty. It will not affect our property prices and the Indonesian rich will not be running away. That is about the gist of what he said. There is fear of how this treaty will impact our large pool of rich Indonesians who have been staying here and investing in our properties and businesses. And the fear is genuine as the main reason that has been floated all these while is to deal with the 'corrupt' rich Indonesians that are here. You can't blame the rich Indonesians for having second thoughts about their well beings. And one can't dissuade the property speculators that this will not have any impact on the property markets. There will be some who will have to change their investment plans and sell off some of their holdings. The rich are mobile and when there is uncertainty, the best option is to disappear to safer ground. No point and no need to put themselves to risk. Now we watch and see how this extradition treaty will play up or down our property market.

1 comment:

Matilah_Singapura said...

> one can't dissuade the property speculators that this will not have any impact on the property markets. <

God bless property speculators — they are the true market makers. These humanitarian people take risks to ensure that the rest of us can make a buck from real estate.

And when they LOSE, they lose big-time flooding the market with cheap(er) property for the rest of us to pick up and profit from the eventual rise in value.

If you see property prices soar wildly upwards, don't blame the speculators — look at the money supply in the country, especially the amount of credit money produced by the banking system. That would give a better picture of "reality". If there is a lot of credit floating around, you know sometime it will crash (or at least "correct"), so keep your powder dry and wait like a greedy by in-control vulture.

Nothing is more heartwarming that to see a property (or stock) speculator giving humankind a "free kick" by making the wrong choice by over-exposing himself to debt, driving up the prices which eventually collapse, and he goes out of business, leaving all those nice condos and houses to be picked up at a fraction of their true value.

Outstanding!