Quote:
Originally Posted by Unregistered
Relying on foreigners to maintain prices is too risky. No matter how short-sighted this government is, I don't think it's _that_ incompetent not to realize this simple fact.
The consequences of letting foreigners continue to maintain or even push up prices is extremely dire. The bubble will definitely burst one day - for example, the foreigners want to realize their profits and invest their cash in other places. In such a scenario, the "ignorant" Singaporeans who over-stretched - and there are many of them - will suffer. Painfully.
The bigger the bubble is allowed to inflate, the harder the fall, the more painful will be the suffering. More citizens will suffer.
Do you think the PAP government is _that_ short-sighted? It must ensure the bubble gets deflated soon, or even allow it to burst soon, than to allow it to burst later.
PM Lee ever said he prefers to take the bitter pill sooner than later.
And PAP will not allow WP to so easily form the next government. |
You have not been reading the papers recently, I believe. The Minister for National Development, Mr Khaw Boon Wan, just mentioned in Parliament as recent as 2 weeks ago, that he has no plans to rein in foreign demand for private property, as we need to be mindful of the "serious economic and social consequences".
I can even pull out the media reports for you, if you need....
The bottom line: The
PAP government realizes very late that it has gone far down the wrong road of no return in the housing policy arena, and the only way forward is to continue to prop up stubbornly high private property price levels by accomodating and even encouraging foreign demand. The costs of not doing so are horrendous, as thousands of Singaporean households would find themselves in negative equities over-night, having made their dream house purchases at sky high prices.
But this also means successive generations of Singaporeans would need to pay higher and higher prices to realize their "private property' dreams.
Short of legally forbiding Singaporeans from purchasing private properties, there are really little policy tools left in its arsenal