Will it create more demand on resale market and private market?
HDB to slow supply of flats from next year
SINGAPORE — The Government will slow down the supply of new public flats from next year — a year earlier than it had indicated previously.
Writing on his blog as applications closed yesterday for the Housing and Development Board’s largest joint Build-to-Order (BTO) and Sale of Balance Flats (SBF) exercise, National Development Minister Khaw Boon Wan said: “As the supply and demand for public housing returns to balance, we will begin to taper off the massive construction programme from next year. We will do so in a measured way, to allow the market to gradually adjust, just like what we had done to cool the property market earlier.”
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http://www.todayonline.com/singapore/hdb...-next-year
Gov trying to balance the demand/supply so as to minimise a knee-jerk price change.
Who is the main cause of housing prices going up, up and away in the first place? You or me or BIG BROTHER? Almost all of us are merely only pawns on a chessboard led by BIG BROTHER.
I think he learnt from Marlboro Tan's Punggol mistake. Marlboro's inaction later on was a direct consequence of he being made a scapegoat for the mistake.
the 90s overbuilding of the Mah era leads to a lot of undersubscribed BTO. Meaning many BTO with half filled flats and no buyers.
I thot Mah has under build and his boss over import and resulted in current high demand low supply? Perhaps the two didn't communicate and each has its own kpi to fulfill, more revenue for one and the more FTs for the others.
(03-12-2013, 03:25 PM)countonme Wrote: [ -> ]I thot Mah has under build and his boss over import and resulted in current high demand low supply? Perhaps the two didn't communicate and each has its own kpi to fulfill, more revenue for one and the more FTs for the others.
Back in 90s, Mah overbuilt. HDB end up oversupply jialat jialat. Mah kenna jialat jialat by everyone. Those who are older will remember.
Thats why in 2000s boom. Die die also dont want to increase supply. Which led to supply demand imbalance. Which is made worse by the FTs influx.
think hdb needs to employ some advance alert/risk mgt system to monitor property market for sg as a whole just like how sgx managed the 3 designated penny in oct..
maybe some circuit breaker to say hdb resale price cannot fall more than 5% in a quarter, else no sale can be done or something?
(03-12-2013, 11:43 PM)pianist Wrote: [ -> ]think hdb needs to employ some advance alert/risk mgt system to monitor property market for sg as a whole just like how sgx managed the 3 designated penny in oct..
maybe some circuit breaker to say hdb resale price cannot fall more than 5% in a quarter, else no sale can be done or something?
Circuit breakers in stock market, are to allow investors sufficient time to react, which are in term of hours, if not minutes. Property sales take much more time to transact. I doubt the concept will work.
(03-12-2013, 11:43 PM)pianist Wrote: [ -> ]think hdb needs to employ some advance alert/risk mgt system to monitor property market for sg as a whole just like how sgx managed the 3 designated penny in oct..
maybe some circuit breaker to say hdb resale price cannot fall more than 5% in a quarter, else no sale can be done or something?
HDB wants flexibility. Wont lock itself with any rules.
There is nothing wrong with the BTO system. Which is built to demand.
Self-adjusting mechanism. The problem is the policy makers delayed in pushing the buttons. Since there is a lead time to build and move in, there will be short term imbalance supply-demand.
Another flop with URA is the tearing down of old offices to build residences in CDB area. Approve too many redevt and cause supply imbalance. they helped office prices to shoot up. Same with resi enbloc.
Policy makers must take note of "tragedy of the commons" effect. As investors, we need to take note too.
Now the "tragedy of the commons" seems to be in reverse. I guess in the factory space over next 2 years. Overstimulated by investment demand. Expect to see some disaster there.