6/28/2010

No property bubble yet!

'Even if we cap our excess, people in Hong Kong, Indonesia, will say, compared to what I have to pay, Singapore is cheap, let's buy it,' he added. 'And apart from landed properties, they can buy into any condos.' Mr Lee, who was speaking at a dinner hosted by the Association of Banks in Singapore, said that the Government is convinced that there is real underlying demand for residential property. 'So it's probably not a bubble yet,' he added. The above comments by MM was reported in the ST. So foreigners want to buy even at much higher prices and we sell. They can buy into landed properties and condos. Would their buying raise the prices of other properties and in turn raise the cost of living here? Just because they want to buy, must we sell? Who sets the rules to allow them to buy condos and landed properties? Are these rules good for Singaporeans? For sure, it is good for developers and taxes. My gut feel is that one day we will regret this thoughtless selling of our precious land to foreigners. By then it will be too late to unwind the clock. And we can't do it like Mahathir, introduce laws to be effective retrospectively. Once the land is sold, freehold land, it is gone forever.

13 comments:

Wally Buffet said...

'So it's probably not a bubble yet,' he added.

Hehe,

This statement tells me it's gonna be a bubble someday. The question is when?

With so many HDB lessees cashing out on the boom and having their homes sold to the influx of "newly minted" citizens, suggest that more rental flats be built because demand is going to skyrocket from the true blue Singaporean always on the look out for quick money even to the extent of selling their roofs over their heads!

What a delicious conundrum.

Anonymous said...

Singaporeans are ever ready to sell their souls for money.

Anonymous said...

Some people have difficulties understanding how economics works. What goes up must come down. The faster it goes up, the faster it comes down. The higher it goes up, the lower it falls.

Property prices are no exception.

Anonymous said...

Before the bubble burst, there is always no bubble.

When they are wrong they will then tell you we were just caught unprepared. It will then be a once in 50 years freak bubble that they could not see.

Anonymous said...

So why must my son serve National Service to protect our pigeon holes while the rich are living in paradise?

Chua Chin Leng aka redbean said...

Just like the stock market, when the prices are going up, they will recommend to buy more, claiming that they can go up higher.

When it crashes, then they will said the bubble bursts as the price would have fallen so much that the new bottom price is unrecognisable and the old price looks so ridiculous.

As for NS, it is an honour and a privilege that citizens are entitled to. A blessing and reward fit for citizens only.

And don't look at money and material comfort. Even the ministers are sacrificing themselves to do national service.

Matilah_Singapura said...

I'll have to disagree with MM on this one.

There is most definitely a property bubble. Reason: look at the increase in the money supply and the bank-created credit -- probably "secured" by foreign deposits.

Anonymous said...

Once in a while the yoda has to say something to soothe frayed nerves. Then everything will be repeated by the mouthpiece media and it will be smooth sailing once again.

Remember, he predicted the golden age not long ago. He was proven right. The price of gold has shot through the roof. It was the price of gold he was predicting.

Matilah_Singapura said...

That's nonsense. Millions of others also "predicted" gold's rise. Have you been looking at the internet for the last 15 or so years?

To even suggest that MM Lee (or others) have such magical "predictive powers" is to elevate this mere mortal to godlike status.

Oh what? Sorry, he is already a god. Silly me.

Chua Chin Leng aka redbean said...

Matilah, why are you taking anonymous post so literally?

Anonymous said...

Where is the bubble ?
Who is causing the bubble ?
Who will burst the bubble ?
No bubble in sight !
How come people see bubble ?
MM Lee Kuan You is 100% right,
there is no bubble. At least not within his life time or that of his children.

Matilah_Singapura said...

redbean, why you so kay-poh kia like a frigid grandma?

Chua Chin Leng aka redbean said...

I grandpa what.