Developers, govt agree to disagree

[Jared Seah]

Singapore has 87% home-ownership. Oner of the highest in the world; and one of the best example of social engineering.

The majority home owners are not speculators; they are also the silent majority.

Some of the minority hoping property prices will "correct" so that they can buy at the "cheap" may not get what they wished for - even if Singapore property prices were to crash 50% like in the States...

Eh... How to get a loan if you are retrenched? Again it will be those speculators that have deep pockets that will benefit.

Be careful what you wished for.

Just ask friends in US, Ireland, Spain - why no one rushing to buy at the bargain basement prices today? If you are aggressive and adventurous, no need to wait for Singapore property market's "correction". Overseas property investing anyone?

There is always a bull market and a bear market somewhere

[VIChris]

There are many ways to control the markets and to avoid bubbles.

The relevant authorities still refuse to lower down the land sale price and also the new HDB prices. I see it as one of the most effective solution to solve sky high prices.

However, the government think likewise. They still wanted to make lots of money from the market.... good luck to us and especially the future generations....

Bring down land sale price will cause many HDB and private properties' owners to go into negative equity.
While the government should ensure that the price will not go up continuously without increase in wages, it must also ensure that the current property owners are not too badly affected. And many of these owners are not speculators.

The key is majority of the home owners stay in their ONE and ONLY house/flat. If the prices move up, they don't really benefit from it unless they are selling and moving out of S'pore for good.

Gradually appreciation may be good, but not rapid appreciation.

Main disadvantages like (but not limited to):
1. Rental will move up due to high asset cost (government is the biggest landlord in S'pore)-> Higher business cost which will pass the cost back to consumer.

2. Higher property tax.

3. Beyond the reach of masses. Nowadays majority of the young coupes need to take 30 years of loan. What happen if either one or both become jobless? Will there be many bad loans in future if economy turn for the bad?

4. By the time you retire, your cpf might be penniless or minimize amount left. You can't take the amount out, so what the purpose of promoting cpf for retirement?

There are so many social impacts on the livelihood for the masses, which the authority might "neglect" while they are chasing after short term gains.

The truth is, the biggest winner of all is the authority and the majority is there for them to milk us.

My 2 cents

[corydorus]

If the home i buy is to stay and only, i don't really care it drops 50%. Is the speculators that should worry about.
Instead we should question why property has been driven up 100% in the first place.

Is quite ironic that people tend to protect the very offender because we have a stake in it later. But if we have think clearly, this shuold not have happen in the first place and the correct moral thing to do is to reverse the course with medicine no matter how bitter it is Or 2 more GRCs.

[brattzz]

Land prices cannot go down as it will be akin to "raiding the reserves"...

sg garhment wants to "prevent bubbles" and STILL "MAKE $$" through 99 yrs "land-sales/lease" to beef up sg's reserves.

Best way to do this?
1) sg garhment to take care of singaporeans who wants to continue staying in sg, throw out as many HDBs as possible...

2) For foreign spectulators, set higher deposit and possible implement "minimum occupate period of 3 to 5 yrs".. soon..

Remember, sg garhment wants the money flow into sg, at the same time, the money to stay in sg, not flow out!!

Eventually, sg garhment will make the next move...

[yeokiwi]

If the home i buy is to stay and only, i don't really care it drops 50%. Is the speculators that should worry about.
Instead we should question why property has been driven up 100% in the first place.

Is quite ironic that people tend to protect the very offender because we have a stake in it later. But if we have think clearly, this shuold not have happen in the first place and the correct moral thing to do is to reverse the course with medicine no matter how bitter it is Or 2 more GRCs.

You are not government. Of course it matters little. A dropping of 50% will mean that they will be out of job for sure.
In your case, the house is probably more or less paid up. It really does not matter how much it drops.
As for those young couples that had just committed to their first home will hardly be pleased to see their house value drops by 50%.
And most of them are not speculators. In the event that they have to sell their property due to unforseen events, they may have to fork out cash to pay the banks.

Put it this way, we are all on the same ship. Letting the property prices going either way too furious will mean some groups of Singaporeans will be unduly affected.

The only way is to hold on to the price and let the wages catch up. It has happened before and I do not see why it cannot be done.

[pianist]

i doubt wages will ever catch up with the high property prices like the old days because land is pretty tight here.

[corydorus]

The fact of the matter is Poor/Wealth divide is getting wider.
Therefore is the "Rich" that will catch up. I doubt the poorer will be easier.