Friday, July 06, 2018

Additional property cooling measure - July 2018

I hold the view that there is no need for the additional property cooling measure that was introduced yesterday.

I suspect that most of the buyers for the private properties come from the 8,000 owners who pocked their huge profits from the recent collective sales and have to replace their property. I do not think that there are many new buyers who have the money to afford the ridiculous high prices.

The additional cooling measure will dampen the property market considerably. There will be a big oversupply of new appartments, from the government land sales, collective sales and the unsold units from past projects.

I expect a big over-supply of properties.

If I am correct, it is another sign of an incompetent government which is not in touch with the market.

If I am wrong, okay. I have the right to be worng.

Tan Kin Lian


Ches L said...

Hi Mr. Tan,
I think the relentless building actually feeds the speculative market and those with deep pockets and foreign buyer who find that property prices in Sg is still low compared to other Asian cities such as Shanghai, Hong Kong & Tokyo.(think China developers)

But I think the latest action by our G is more a mean to collect more revenue. Those with deep pockets will still continue to buy.
Singaporean will stay in HDB flats.

It is good to have cooling measures. But it is too late. Singaporeans are already suffering.

Anonymous said...

Try to receive the measures with an open-mind. They did the preventive maintenance. There are some merits in their decisions, they will be earning 5% more to spend and improve the people's quality of life. Think about it. Its only fair to them. They work so hard for the people. A taxi-driver once told me how lucky we were. In short I learnt his wife was from Thailand. But his actions and words did not match. He told me that when his children are finished their education here they would be moving to Thailand. For every decision there will be advantages and disadvantages. As long as the good outweighs the bad lets embrace it. After all a rich and happy government translates to a rich and happy people. Count our blessings. We wont be ending up with Najib's kind of reserves.

Thiagarajan V said...

Mr Tan,
I do not agree that this measure is for the cooling off effect.
You are right. Many of the collective sale owners only are buying the property. How many Singaporeans who have upgraded to private property are still renting out their HDB units and staying in condo's. I remember last time there was strict rule that if you upgrade to private condo you must live in HDB and rent out the condo unit. What happened to all those rules now?

Anonymous said...

The world will still keep turning without them.

Anonymous said...

Most of their actions come from their head not from the heart. They are so trapped in controlling every detail that regardless of what we try to do, we feel inhibited and cannot work in full capacity. If one wants best result know when to back off but watch with interest.

Anonymous said...

They are assigned a role being paid a good salary. If they lack ideas how to keep property prices down without all the top-ups, than they use their power to recreate the top-ups to their control.

Anonymous said...

Changi Airport- WOW!

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