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12/07/2007

Reining in property prices

More residential units in suburban areas for upgraders. This move is to curb the high property prices that is running out of reach of Singaporeans wanting to upgrade. With the kind of salary that the average Singaporeans are getting, it is unlikely that they can afford the kind of prices of private properties unless they want to pay for them for life. Would the new measures help? Executive condominiums with some restrictions on income level should keep the very rich out of this market. So the average Singaporeans can compete among themselves. Sounds ok. But with an average intake of 50k PRs coming into the market annually, how is this going to make a difference? Are PRs entitle to buy exec condos? I think so. So how much will this affect the opportunities given to Singaporean upgraders?

3 comments:

Matilah_Singapura said...

What are you belly aching for?

The govt announced that it is release more land next year for private homes.

One of the reasons property prices are so high is that the supply of land has not increased to meet the increase in demand. Releasing more land for sale is a fucking good idea.

In that way, more and more of the territory will be privately owned—as per my motto "privatise everything".

redbean said...

good idea to have more land. but would the additional land be taken up by prs instead of citizens?

Matilah_Singapura said...

> would the additional land be taken up by prs instead of citizens? <

Options to buy anything in the market are not determined by national status.

They are determined by the needs and wants of individuals. Who knows who is going to buy? The only certainty you have is yourself—whether or not not you will buy.

Bear in mind too that a lot of the land held by the state was STOLEN from unsuspecting kampong dwellers, and land owners when LKY got in, and these people were not adequately compensated, in fact it was indeed lucky if you got anything.

Times have changed. S'pore is slowly shedding some of its socialist past. The govt apparently pays market prices for land nowadays.

However, let us not forget how fucking smart the S'pore govt is in making money BY FORCE. Remember the supply of land is FIXED. When prices of real estate were LOW only a few years ago, the govt didn't release land. IMO it should have. That would have made it CHEAPER to develop property, and because the market was flat, market prices for accomodation would have been lower and thus more affordable.

Also, releasing land when the prices were low has another long-term effect: you wouldn't have the spikes in real estate prices now, and a virtual war between those whose property values are skyrocketing, and those who are desperate to buy or rent a place to live.

When govt interferes in market mechanisms, one of the WORST externalities it causes is one group gains at the expense of another.