truth wrote:
Singapore is a very tiny place. Land is finite. The major part of Singapore
has been developed. The spaces above have also been almost fully utilises.
There is not much higher they can rezone. So the capacity to increase the
housing supply is finite.
Given this limatation of Singapore and the current extremely attractive
location of Singapore to the world population and businesses, u can easily
see why despite the government intention to ram in the surge in house prices
have failed so far. They are digging deep into their land reserves to win
this battle against massive buying pressure. They have now made it very
clear that there will be over 50,000 units coming into the market. Yet the
buying are still strong.
The reason is simple. All those developers who holds land reserves as well
as sizeable number of apartments are rich and have holding power. They have
more money than property they can buy. They also know that the government
stocks is rapidly declining. That is why these smart people are holding on.
Short of banning the foreigners from buying Singapore properties, the papist
Leegime has basically lost the control over the property market in
Singapore. It is now controlled by the rich developers and foreign funds.
Face it Singapore is a much desire destination for the rich and not so rich.
The Chinese love Singapore, the Indians love Singapore, the Indonesians love
Singapore, the Australian now also love Singapore. The Europeans and
Americans can heading in massive number into Singapore. To them it is
paradise. So the demand for housing is strong. So strong that even 100,000
units will also not be enough. Compare to other international cities,
Singapore is still cheap. There is ample liquidity. Cost of funds is cheap.
Inflation is surging.
So the papist leegime is caught in a little trap of their own making. The
economy is geared onto a higher plane and to reverse it is suicidal.
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