Today on the first page of the Straits Times, there's a proud proclamation that the "cooling measure" imposed by the Singapore government has rein in housing prices in the country. The Housing and Development Board (HDB) proudly said that prices for both HDB resale flats and private homes grew at a slower pace, at a gentle 0.5% increase in prices.
Sorry, but I do not agree that the cooling measures has worked at all. I do not agree because an increase in prices is...an increase in prices. The cooling measures were designed to lower prices so that they would be more affordable to Singaporeans. Housing prices in Singapore are still going up. Logic says that if housing prices are still going up, then the cooling measures are not working!
Simple right? I mean the Resale Price Index (RPI) flash estimates for the first quarter 2013 is at an all-time high. Clearly, housing prices are continuing to climb.Ordinary families are still having to take 20-30 years loans to finance their flats. That means the property cooling measures have not been working!