S’poreans driving private property market, says Mah

Dear Mr Mah,

I refer to the 19 Oct 2010 Straits Times report that it is Singaporeans who are driving up the private property market. As far as genuine home buyers are concerned, no one wants to drive up home prices and end up paying high prices be it Singaporeans or otherwise. The buying frenzy by genuine home buyers is quite simply due to the fact that housing supply cannot meet housing demand fuelled by the rapid influx of foreigners. Thus, it matters not whether it is Singaporeans, PRs or foreigners who are buying up property. The crux of the matter is that there is not enough to go around because the government did not push out enough land for housing to accommodate the huge influx of foreigners.

It matters not too who is actively engaged in sub-sale activities. What matters is the sharp rise in property prices making sub-sale activities profitable. This sharp rise in property prices again, is due to the imbalance between supply and demand of housing.

Thus, no matter how we look at it, the root cause can always be traced back to the imbalance between supply and demand of housing due to poor government planning.

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2 Responses to “S’poreans driving private property market, says Mah”

  1. passerby Says:

    There is some truth to what you say however, in land scarce Singapore, there is so many units you can push out without jeopardizing the fine balance between owners and buyers interest. So on careful analysis, the minister is right to say singaporeans are driving up prices. But as you usual, he left out the depth so you need to work your brain a bit harder to figure it out.

    • trulysingapore Says:

      not true. singaporeans are like individual buyers of rice. but the government is the wholesaler controlling the supply of rice. when the government doesn’t push out enough rice, singaporeans start bidding over one another for the limited rice available leading to price escalation.

      therefore, ultimately, it is the minister who is driving up the prices and putting the blame on singaporeans. many people don’t understand this and i don’t blame them. you need to work your brain a bit harder to understand that.

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