In the last General Elections (GE), one of the reasons why the People’s Action Party (PAP) lost votes was because of the sky-rocketing prices of homes in Singapore. Singaporeans are waiting for the government to takes steps to tackle the issue of high (and still rising) prices. The latest steps from the Housing Development Board (HDB) to raise the income ceiling of Singaporeans to qualify for an HDB flat is meant for that and it will be…a total failure!
I do not believe raising the income ceiling from $8,000 to $10,000 will make a single dent in rising housing prices in Singapore. Not only that, I can’t see it having any affect whatsoever. The main reason why Singapore housing prices are still rising (despite the world economy being in trouble) is because of the many foreigners who are snapping up properties in Singapore. This is something everyone knows but the latest ruling from the HDB does not target them but Singaporeans?
What would that do? How would that lower the housing prices in Singapore? It doesn’t and that’s why I believe this new ruling won’t affect prices in the slightest. Everyone in Singapore has heard from the government about how prices should come down in 2014, 2015 etc and guessed what? Everyone heard and promptly ignored them!
I can understand exactly where they are coming from. It is 2011 which means there is at least 3 years of rising prices, so why shouldn’t I ignore what the government says right now? The PAP seen more worried about a potential housing collapse than high housing prices and since the GE have engaged in trying to talk down housing prices than doing anything concrete against the market.
The PAP government needs to understand one simple thing; housing prices have been rising for years and they will continue to rise unless something is done to stop it! You cannot let your fear of a potential problem (housing collapse) stop you from taking concrete steps to solve the problem you currently do have (high housing prices)! As the results of the past few years have proved, trying to talk down housing prices just doesn’t work.
4 comments:
Rising property prices is a boon to government coffers and is only a problem to those looking for accommodation. Since it is not their problem, paying lip service is all anyone can expect.
Not only bull property market brings huge $$$$ to govt through land sales and stamp duties, but it also jacks up GDP for a significant proportion of S'pore --- law firms, property developers, banks, finance companies, REITS, construction firms, architects, contractors of all sorts, interior designers, furniture & fixtures, property management companies, transport companies, crane & tractor leasing companies, manpower companies, and all the other companies supporting the above. At least 30% to 40% of the entire GDP is dependant on a bull property market. PAP will not want to slow things down, let alone reduce prices.
Besides, there are much more property owners and HDB lessees than potential buyers. PAP wants to ensure majority are happy first in order to preserve votes.
This measure to increase income limit to $10k for HDB flats and $12K for EC sounds more like pandering to the PAP elites. Many of their children and grandchildren have recently graduated from Uni and after just 2 years working, many have exceeded the $8K household income limit to enjoy the "free money" of subsidised HDB housing. They are demanding their "right" to this free money. Most will not stay in the HDB flats and will buy condos after couple years. They simply just want to enjoy their "right" and to sell the HDB flats for a nice profit after the minimum 5 years.
Which is why I say why bother with a new ruling that will make no difference?
Pretty worthwhile piece of writing, much thanks for the post.
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