A contributor to the ST forum today, Woon Toon Tuan, wrote an article titled, ‘Why property prices will remain high’ and quoted some amazing numbers which he said were from official sources.
He stated that from 1995-2010, the population of citizens and PRs increased by 758,000 while 128,896 private homes were built. The 758,000 when translated into homes needed with a 3.5 person per household were 216,628 homes. Between the two, there was a shortfall of 87,732 homes needed. To date, there are 77,089 units of incompleted homes in the pipeline and these would still be insufficient and will thus not quench the demand for housing. Prices will thus remain firm.
I am not sure if public housing would affect his numbers as he mentioned that the 128,896 were private homes. Then he added that in year 2010, the population increased by another 107,000 foreigners. This would translate to another 30,000 units of home for them.
It is really very funny that if these are official data, how could they be missed and some jokers happily cut down on the building of public housing? Actually it is not funny at all when so many people were adversely affected and their savings kenna wiped out because of high demand and low supply of housing. Home buyers could have suffered a few hundred thousand dollars extra in the prices they paid because of this boo boo. Some would have to push back their buying decision only to end up seeing the prices rocketing to the sky. And they are stucked with no housing till today. Those that have to pay the exceptionally high prices would have no recourse to the monetary loss they have incurred because of this fiasco.
Nobody is responsible for the shit they have ended up in. Ya, they can blame it on market forces.