9/14/2011

Property prices to drop by 10%

The writing is on the wall. With the cooling measures in place, and the ramping up of supply, property sales are going down. So is my hope for my $1m HDB flat. The developers are worried. Some are calling Boon Wan to free up all the cooling measures to allow property prices to go up again.
The frenzy of the last few years, the high profits of the developers and speculators may now see some earning lesser than before. This is no good.

We must not violate the principles and virtues of running businesses for profits. The cooling measures are bad in preventing smart people from making a rip off from the property market. The developers will be discouraged to bid higher prices for land and may not want to develop more properties. Our GDP will suffer. Foreigners with their container loads of cash will not be pouring their money here and all of us will be poorer.

I support the developer’s call for the removing of all the artificial measures to curb property prices. The market forces must be allowed to dictate the prices of properties. And knowing how limited our land is, property prices can only go up in a free market system. The speculators and investors know the number game. All Singaporeans will be enormously rich if the land is free for sale.

Before the property market is let loose again, I have one caveat. The profits from the sale of all properties must be equally share by the Singaporeans. And a census be taken immediately and the profits will only go to Singaporeans who have been Singaporeans for at least 10 years. New Singaporeans shall not reap the profit of this selling Singapore exercise.
When this is done, there is no more need to curb property prices or any prices. Let the market do the talking. And no need to restrain influx of foreigners. The more they come the better it is as they will contribute to the higher demand. My HDB flat may not be $1m. It could be $2m or more.

When all the land has been sold, a tally should be conducted and all the profits share by the Singaporeans. And they can have the choice of staying here or migrating to bigger countries where land is aplenty. Singaporeans will have choices from the profits of a free economy and the freest country in the world. Everything is market price. Everyone has choices, to stay or to go, after collecting their windfall.

No need for any emotional attachment to this island. It can go to the highest bidder, as long as the money is spread to all Singaporeans. We can grow the population to 20m or 30m. It could be the most sophisticated and most modern city state. No need to restrict car ownership too. Just pay when one drives at a rate determined by the market and congestion on the road.

Singapore will be a truly vibrant, prosperous and international city of the world.

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