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27-06-2011, 02:59 PM
From my non-scientific obervation and personal experience, I think its more than a question of more competition or government monopoly...
The biggest reason for property price increase is economy good and property buyers feel optimistic and invincible (I will never lose my job, interest rates will not rise, I afraid to miss the boat, I so very de smart, etc).
The biggest reason for low property price drop is economy bad and not enough of "confident" property buyers above...
I remember the 1985 recession was caused by Govt raising the average wage of Singaporeans to "encourage" businesses to upgrade and not rely on "cheap" wage costs to compete globally. How about Govt increasing the employer CPF back to 25%?
Short-term property prices will increase since more can afford (employees cheers, while employers start to explore outsourcing). But once we over-price ourselves and new investments start to flow overseas, unemployment will go up and we will have what we want: low property prices!?
Of course I say this half-in-jest. But I do want to show how contradictory and difficult to implement policies that work for all vested parties. Salary is revenue to employees; but cost to employers. Same goes for HDB prices. Even subsidies have to come from somewhere - unless we want to follow the mediterranean route - borrow and let our grandchildren worry about repaying...
http://www.marketwatch.com/story/beijing...2011-06-26
The biggest reason for property price increase is economy good and property buyers feel optimistic and invincible (I will never lose my job, interest rates will not rise, I afraid to miss the boat, I so very de smart, etc).
The biggest reason for low property price drop is economy bad and not enough of "confident" property buyers above...
I remember the 1985 recession was caused by Govt raising the average wage of Singaporeans to "encourage" businesses to upgrade and not rely on "cheap" wage costs to compete globally. How about Govt increasing the employer CPF back to 25%?
Short-term property prices will increase since more can afford (employees cheers, while employers start to explore outsourcing). But once we over-price ourselves and new investments start to flow overseas, unemployment will go up and we will have what we want: low property prices!?
Of course I say this half-in-jest. But I do want to show how contradictory and difficult to implement policies that work for all vested parties. Salary is revenue to employees; but cost to employers. Same goes for HDB prices. Even subsidies have to come from somewhere - unless we want to follow the mediterranean route - borrow and let our grandchildren worry about repaying...
http://www.marketwatch.com/story/beijing...2011-06-26
Just google singapore man of leisure