From oversupply to undersupply to…

With all the best talents, with all the planning, pre emptive policies and targeted response, the housing market has been swinging like a pendulum, from over supply to under supply and to stop gap measures. Is this how the housing of the people should be managed? Over built and under built seem to be a norm because supply and demand are fickle and unpredictable. This all boils down to the meddling of a public housing policy to house the people to one that turns housing into a commodity for trading and speculation, responding to market forces with different objectives. When the supply of public housing is determined strictly be demand and trying to anticipate demand and not to provide a home for the people, this is what we get. Public housing is not only an economic consideration, it is a political issue and cannot be simply decided based on profitability and market forces. A 10,000 unit over supply is a problem that should not be from the start. Why, how could it happen? But having a situation that there is completely no available stock and to build only when there is a demand and be completed in 3 to 4 years down the road is equally disgusting as a public policy. Heard the latest stop gap measure that raises the income ceiling to $5000 for buying of 3 rm flats. The reason, to prevent these buyers from over stretching themselves and forced into buying more expensive flats that they could not service. What about those who happened to earn more than the commandment that $8000 ceiling is immovable and be forced into buying private properties and overstretching themselves? Is it alright to force those who earn a little more into the crazy private property market to be squeezed by the astronomical prices of private properties? Where is the responsibility to ensure that people should buy within their means and not endanger themselves by over committing? It is individual responsibility to manage their finances. But how can govt policy force people to over commit themselves with an immovable income ceiling that is already obsolete? Can we have another stop gap measure tomorrow to raise the ceiling for 4 rm flat and another one for 5 rm flat next year? Such piece meal changes are manifestation of not thinking through the whole problem and not looking at the big picture. Can someone remove the blinkers please.


Anonymous said...

All markets for whatever the beings deal in are manipulated by businesses in cahoot with regulators and most regimes. When the political leaders who form the regimes, their relatives and cronies are the owners and bosses of the commercial houses. What can the people(end users) expect?

So, are we to believe in the craps and shits that are dish out to us, the people, all the time? We're made suckers all the time, but truth be told, we are neither moronic nor naive.



Matilah_Singapura said...

I have to bring it up again: when I last went "shopping" way back in 2001/ 2002 sellers/ land lords were moaning and groaning about how fucked-up the market was -- e.g. semi D's in B Timah/ Seletar $750k, Orchard Rd rentals 1.6-2k, HDB's around 200k. (pries from $250-$700 per sq ft -- wah damn shiok!!)

I also remember all you can eat buffets at 5 star hotels dropped to around 20 bucks.

That period -- after 9/11, Asian Currency Crisis (massive capital flight out of Asia) and Tech Bubble bust. Doom and gloom everywhere -- but not for me.

Then Alan Greenspan decided to print money to "inflate" the sagging economies to "save" the day. Ah yes, another one of the famous "Greenspan puts".

Every other central bank started inflating too...even MAS. If you look at the rates of M0-M3 increase from that time the rates of money supply increase increased year-on-year.

Very soon, the smiles started coming back to people's faces as the "economy improved".

By 2007 it was hot again. En blocs in Tanglin/ Orchard -- $4000+ per sq foot.

So don't blame HDB in total -- what do you expect? They are a govt dept. When the govt does stuff, it fucks up -- guaranteed, because no one in there can go bankrupt or be charged with negligence.

If I were to blame anyone it would be:

1. US Federal Reserve

2. MAS under that idiot Goh Chok Tong