What did Mah Bow Tan say in Parliament?
Singapore Minister: Will Take Further Measures On Property If Necessary SINGAPORE -(Dow Jones)- Singapore Minister for National Development Mah Bow Tan Monday said the government is closely monitoring the property market and will take further steps to keep property prices at sustainable levels if needed…. "It is not the intention of the latest measures to crash the (property) market... but rather to cool the market," Mah said in response to a question in Parliament…. The above is quoted from Dow Jones. What is Mah Bow Tan trying to say? The current property prices are reasonable and sustainable. It also means that the prices can still go up and he is quite comfortable with it. There is no intent to bring the prices down and there is still no bubble yet. When there is a bubble, when the prices are unsustainable, more measures will be introduced. When or at what kind of prices will be enough to bring in new measures? What is not said is that for a $400k property, if the price goes up by 10% or $40k, the young people waiting to buy will effectively receive a pay cut of $40k. How many young people can tahan such a pay cut when their pay rise is normally $200 to $400 or $3k to $5k annually? And if the current prices are sustainable and no cause for alarm or stopping it to climb further, the young couples are as good as chasing a rainbow that only gets further away by the days. Salary increases, $4k pa, housing price up by $40k pa. Sure die one.