Land scarcity

At the end of the day, the property price disturbances we have experienced of late merely goes to show how scarce land is in Singapore. When a choice location like Tiong Bahru becomes fully developed, it leaves little room for more housing to be added there. What that means is that even though there may be potentially thousands of resale flats available in Tiong Bahru, in practice, only a handful would be up for sale because for most people, a home is a home rather than an investment vehicle to be encashed in times of good prices. So high property prices merely reflects land scarcity.

What Mr Mah has done is to make the alternative, a home in a far flung corner of Singapore, more enticing and alluring. More land near to areas of frenzied demand have also been set aside for flats. I think these are probably the best the govt can do at the moment. We can only hope that in a few years time when these projects come to fruition, they would go a long way in alleviating the shortfall that is being experienced now.

Hopefully when the time comes, we do not see even greater numbers of foreigners that would again outstrip the available housing.

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